You have two options to buy an item:

Option A: mean = 25,000 standard deviation = 3,500

Option B: mean = 26,000 standard deviation = 4,500

Questions:

a) You will go with the option that will have the higher probability of meeting yoru spending limit of $23,000 or less? Which option is it?

b) By how much is this option expected to have a higher likelyhood of selling you the item for 23,000 or less?

c) There is a 91 probability that the price of item B will be higher than what amount? (Do I use the NORMINV function for this, i.e NORMINV(.05,26,4.5)?