Question 1 Calculate net price factor and net price. Dollars list price = $435.20 Trade discount rate = 26%, 15%, 5%. Answer 1 Step 1 Subtract each of the trade discount rates from 100% and then convert the answer to decimal form. a) 100 % − 26 % = 74 % 100%−26%=74% = 0.74 =0.74 b) 100 % − 15 % = 85 % 100%−15%=85% = 0.85 =0.85 c) 100 % − 5 % = 95 % 100%−5%=95% = 0.95 =0.95 Step 2 Compute the net price factor by multiplying all the above computed decimals together. Net price factor = 0.74 × 0.85 × 0.95 = 0.59755 Net price factor=0.74×0.85×0.95=0.59755 Hence, the net price factor is 0.59755. Compute the net price as follows. Net price = List price × Net price factor = 435.20 × 0.59755 = 260.05376 Net price=List price×Net price factor=435.20×0.59755=260.05376 Hence, the price is $260.05. Question 2 In the EAI sampling problem, the population mean is $71,500 and the population standard deviation is $5000. For 𝑛 = 30 n=30, there is a 0.4908 probability of obtaining a sample mean within ± $600 of the population mean. a) What is the probability that 𝑥 ˉ x ˉ is within $600 of the population mean if a sample of size 60 is used (to 4 decimals)? b) Answer part (a) for a sample of size 120 (to 4 decimals). Answer 1 a) The probability that 𝑥 ˉ x ˉ is within $600 of the population mean if a sample of size 60 is used is, 𝑃 ( − 600 < 𝑥 ˉ − 𝜇 < 600 ) = 𝑃 ( − 600 5000 60 < 𝑍 < 600 5000 60 ) P(−600< x ˉ −μ<600)=P(− 60 5000 600 4 x>4 The interval notation is ( 4 , ∞ ) (4,∞). Answer: The solution of the inequality is 𝑥 > 4 x>4 and the interval notation is ( 4 , ∞ ) (4,∞).