Probability of finding a household

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Reference no: EM13990281

A recent survey by a local municipality established that daily water usage by its households is normally distributed with a mean of 220 litres and a standard deviation of 45 litres.

(a) Use standard normal z-tables to answer the following questions:

(i) What percentage of households is likely to use more than 300 litres of water per day?

(ii) What is the probability of finding a household that uses less than 100 litres of water per day?

(iii) What is the most amount of water used per day by the lowest-consuming 15% of households?

(iv) The municipality plans to implement a differential tariff policy to charge households that use more than a certain volume of water per day a higher rate per litre. If the municipality wants no more than 20% of households to pay this higher rate per litre, how much water per day must a household use before they will pay the higher rate per litre?

(b) Use the Excel function NORMDIST to solve (a)(i) and (ii).

Reference no: EM13990281

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