Assume the price of a gallon of milk is normally distributed with a mean price o

Question

Assume the price of a gallon of milk is normally distributed with a mean price of $2.16 with a standard deviation of $0.07. On a given day, a particular food store sold milk for $2.09 Interpret the z-score for this gas station. The milk price of this food store falls 7 standard deviations above the mean milk price of all food stores. The milk price of this food store falls 1 standard deviation below the milk gas price of all food stores. The milk price of this food store falls 1 standard deviation above the mean milk price of all food stores. The milk price of this food store falls 7 standard deviations below the mean milk price of all food stores.

Explanation / Answer

Z SCORE FOR THIS GAS STATION

Z = [2.09 - 2.16 ] / 0.07

Z = -1

THE MILK PRICE OF THIS FOOD STORE FALLS 1 STANDARD DEVIATION BELOW THE MILK GAS PRICE OF ALL FOOD STORES

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