4. A local convenience store chain is running a promotion on the purchase of a s
ID: 1141407 • Letter: 4
Question
4. A local convenience store chain is running a promotion on the purchase of a six-pack of soda. When a customer purchases a six-pack of soda, they receive a $0.50 instant rebate. However, the customer must pay sales tax on the posted price, not including the rebate. In Las Vegas, sales tax is 8.00%. The average posted price for a six-pack of soda in Las Vegas from one of the convenience store locations is $4.99. The variance of the posted price for a six-pack of soda in LAs Vegas from one of the convenience store locations is 3.50.
a. What is the average final price paid for a six-pack of soda in Las Vegas from one of the convenience store locations?
b. What is the standard deviation of the final price paid for a six-pack of soda in Las Vegas?
Explanation / Answer
Answer: a. the average final price paid for a six-pack of soda in Las Vegas from one of the convenience store locations:
Average posted price for a six-pack of soda is = $4.99
Sales tax = 8.00%
So 8 % of $4.99 is 0.40
Price after sales tax is = $4.99 + $0.40
= $5.39
Instant rebate on six –pack of soda is = $0.50
So the average final price paid for six –pack of soda is = $5.39 - $0.50
= $4.89
Answer: b
The standard deviation is the square root of variance
S.D = variance
Variance = 3.50
S.D.= 3.50
S.D. = 1.87
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.