SOLUTION: A firms marketing manager believes that total sales for the firm next year can be modeled by using a normal distribution with a mean of 2.5 million and a standard deviation of 300,

Question 1178618: A firms marketing manager believes that total sales for the firm next year can be modeled by using a normal distribution with a mean of 2.5 million and a standard deviation of 300,000.
What is the probability that the firms sales will exceed 3 million?
What is the probability that the firms sales will fall within 150,000 of the expected level of sales?
In order to cover fixed costs, the firms sales must exceed the break-even level of 1.8 million. What is the probability that sales will exceed the break-even level?
Determine the sales level that has only a 9% chance of being exceeded next year.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
z=(x-mean)/sd
1. This would be z=500000/300000 or z> 5/3. That probability is 0.0478.
2. This would be -0.5< z < +0.5 or probability of 0.3829.
3. This would be z> (700,000)/300,000 or z > 7/3 The probability is 0.0098
4. The 91% percentile is from invnorm(0.91,0,1)=+1.34. This would be a sales level of 402,000 above the mean or 2,902,000. More exactly, it is 2,902,227.
RELATED QUESTIONS
A study of the impact of executive networking on firm performance measured firm... (answered by Theo)

Customer support & distribution costs are pretty high at Millenium. The total amount was (answered by searge88,beh929)

Suppose that a marketing firm sends questionnaires to two different companies. Based on... (answered by solver91311)

A company is considering bids submitted by seven different firms for three different... (answered by KMST)

In an article in the Journal of Management, Morris, Avila and Allen studied innovation by (answered by stanbon)

1. In an article in the Journal of Management, Morris, Avila and Allen studied... (answered by stanbon)

Towels & More For the year ended 12-31-XX Sales $600,000... (answered by ewatrrr)

The weight of cement bags produced in a cement company follow normal distribution whose... (answered by CPhill)