SOLUTION: A study of Hub Furniture regarding the payment of invoices reveals the time from billing until payment is received follows the normal distribution. The mean time until payment is r

Question 155216: A study of Hub Furniture regarding the payment of invoices reveals the time from billing until payment is received follows the normal distribution. The mean time until payment is received is 20 days and the standard deviation is 5 days.
a. What percent of the invoices are paid within 15 days of receipt?
b. What percent of the invoices are paid in more than 28 days?
c. What percent of the invoices are paid in more than 15 days but less than 28 days?
d. The management of Hub Furniture wants to encourage their customers to pay their monthly invoices as soon as possible. Therefore, it announced that a 2 percent reduction in price would be in effect for customers who pay within 7 days of the receipt of the invoice. What percent of customers will earn this discount?

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A study of Hub Furniture regarding the payment of invoices reveals the time from billing until payment is received follows the normal distribution. The mean time until payment is received is 20 days and the standard deviation is 5 days.
a. What percent of the invoices are paid within 15 days of receipt?
z(15) = (15-20)/5 = -1
P(z < -1) = 0.1586..
------------------------------
b. What percent of the invoices are paid in more than 28 days?
z(28) = (28-20)/5 = 1.6
P(z > 1.6) = 0.5480...
------------------------------------
c. What percent of the invoices are paid in more than 15 days
but less than 28 days?
P(-1 < z < 1.6) = 0.7865
-------------------------------------
d. The management of Hub Furniture wants to encourage their customers to pay their monthly invoices as soon as possible. Therefore, it announced that a 2 percent reduction in price would be in effect for customers who pay within 7 days of the receipt of the invoice. What percent of customers will earn this discount?
z(7) = (7-20)/5 = -2.6
P(z < -2.6) = 0.0047
==============================
Cheers,
Stan H.

RELATED QUESTIONS
A study of Furniture Wholesales, Inc. regarding the payment of invoices reveals the time (answered by stanbon)

. A study of a company's practice regarding the payment of invoices revealed that an... (answered by robertb)

A study of a company's practice regarding the payment of invoices revealed that on the... (answered by solver91311)

A study of furniture wholesales,inc regarding the payment of invoice revealed that, on... (answered by Theo)

Frank's credit card statement shows a balance of $638.19 on the first day of the billing (answered by Fombitz)

A credit card calculates interest using the average daily balance method. The monthly... (answered by ankor@dixie-net.com)

I am suppose to receive a payment of $950.00 on the first of the month but do not receive (answered by rfer)

Betty received $ 500,000 from a life insurance policy to be distributed to her as an... (answered by CPhill)

The financial director of a hardware wholesaler has asked the accountant to ring each... (answered by ewatrrr)