SPS SPS FM Statistics 2024 January — Question 5

Exam BoardSPS
ModuleSPS FM Statistics (SPS FM Statistics)
Year2024
SessionJanuary
TopicLinear combinations of normal random variables
TypeMultiple period profit/loss calculation

5. A company uses two drivers for deliveries.
Driver \(A\) charges a fixed rate of \(\pounds 80\) per day plus \(\pounds 2\) per mile travelled on that day.
Driver \(B\) charges a fixed rate of \(\pounds 120\) per day plus \(\pounds 1.50\) per mile travelled on that day.
On each working day the total distance, in miles, travelled by each driver is a random variable with the distribution \(\mathrm { N } ( 83,360 )\). Find the probability that the total charge to the company of three randomly chosen days' deliveries by driver \(A\) is at least \(\pounds 300\) more than the total charge of two randomly chosen days' deliveries by driver \(B\).