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Suppose Blue Cab Company charges $2.85 a ride up to 0.1 miles and $0.30 for each additional tenth of a mile. If the mean distance a passenger wants to go is 5.3 miles with a standard deviation of 1.4 miles, what is the mean of the fare passengers pay?

Question

Suppose Blue Cab Company charges 2.85arideupto0.1milesand2.85 a ride up to 0.1 miles and 0.30 for each additional tenth of a mile. If the mean distance a passenger wants to go is 5.3 miles with a standard deviation of 1.4 miles, what is the mean of the fare passengers pay?

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Solution

To calculate the mean fare passengers pay, we first need to determine the cost for the average distance a passenger travels.

  1. The first 0.1 miles cost $2.85.

  2. The remaining distance is 5.3 miles - 0.1 miles = 5.2 miles.

  3. We then need to convert this remaining distance into tenths of a mile, as the company charges per each additional tenth of a mile. So, 5.2 miles * 10 = 52 tenths of a mile.

  4. The cost for these additional tenths of a mile is 52 * 0.30=0.30 = 15.60.

  5. Adding this to the initial 2.85givesusameanfareof2.85 gives us a mean fare of 2.85 + 15.60=15.60 = 18.45.

So, the mean fare passengers pay is $18.45. The standard deviation is not needed for this calculation.

This problem has been solved

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