Answer Happy

Question 4: Suppose an automobile company has the following rules. Cars would be leased for a maximum of 5-years The highest usage allowed during the lease period is 70,000 miles. If the lessee goes beyond this limit, a penalty of 25 cents per mile is added to the lease cost. The distribution of miles driven on 5-year leases follows the normal distribution. The mean is 57,000 miles and the standard deviation is 5,000 miles. Answer the following: a. What percent of the leases will yield a penalty because of excess mileage? [2 marks] If the automobile company wanted to change the terms of the lease so that 20% of the leases went over the limit, where should the new upper limit be set? [2 marks] b. c. One definition of a low mileage car is one that is 5-years old and has been driven less than 48,000 miles. What percentage of the cars returned are considered low mileage? [2 marks]

Question 5: The government's corporate governance team has 12 members, 7 male and 5 female. In light of the recent debacle at Rogers Telecommunication the government has decided to commission an inquiry. Three of the 12-member corporate governance team will form the team that will conduct the inquiry. The members will be chosen in random. a. What is the probability that all three members chosen will be female? [2 Marks] b. What is the probability that all three members chosen will be male? [2 Marks