$592 is the minimum cost in dollars for a fair to be included in the highest 3% of domestic airfares. Using the concept of probability -
Probability is a mathematical discipline that concerns with numerical figures of how probable an occurrence is to occur or how probably a statement is to be true. A number between 0 and 1 is the probability of an occurrence, where, broadly speaking, 0 denotes the event's impossibility and 1 denotes its certainty.
Mean – 385 per ticket
Standard Deviation - 110
Now,
P (Z > x ) = 0.03
Value of z to the cumulative probability of 0.03 from the normal distribution table is 1.88
P(x - u / (standard deviation) > x - 385/110) = 0.03
That is, (x - 385/110) = 1.88
Therefore, x = 1.88 ×( 110+385)
= 591.91 or $592
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