8
QuizMultiple Choice

Normal Distributions

Question 8 • EAP-Algebra Functions and Data Analysis B

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?

Answer
A
$1.00
B
89¢
C
$1.16
D
$2.00

Explanation

Use the z-score formula: z = (price − mean) ÷ standard deviation. Solving for the price gives $1.25 + (−1.25 × $0.07) = $1.1625, which rounds to $1.16. The tea’s actual cost is $1.16.

AI-written and checked against the verified answer.

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