## A sample of restaurants in a city showed that the average cost of a glass of iced tea is \$1.25 with a standard deviation of 7¢. If a new res

Question

A sample of restaurants in a city showed that the average cost of a glass of iced tea is \$1.25 with a standard deviation of 7¢. If a new restaurant charges a price for iced tea that has a z-value of -1.25, then what is the tea’s actual cost?

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1 week 2021-09-12T05:53:00+00:00 2 Answers 0

1. Answer: It is actually 1.16\$ (The guy below accidentally added an extra 1)

Step-by-step explanation:

The tea’s actual cost is \$116.25

Step-by-step explanation:

* Lets revise how to find the z-score

– The rule the z-score is z = (x – μ)/σ , where

# x is the score

# μ is the mean

# σ is the standard deviation

* Lets solve the problem

– The average cost of a glass of iced tea is \$1.25

– The standard deviation of it is 7 cents

– A new restaurant charges a price for iced tea that has a

z-value of -1.25

* Lets change the average cost to cent

∵ \$1 = 100 cents

∴ The average cost of a glass of iced tea = 1.25 × 100 = 125 cents

∵ z = (x – μ)/σ

∵ z = -1.25

∵ μ = 125

∵ σ = 7

∴ -1.25 = (x – 125)/7 ⇒ multiply both sides by 7

∴ -8.75 = x – 125 ⇒ add 125 to both sides

∴ 116.25 = x

* The tea’s actual cost is \$116.25