SOLUTION: A study of Furniture Wholesales, Inc. regarding the payment of invoices reveals the time from billing until payment is received follows the normal distribution. The mean time unt

Question 327243: A study of Furniture Wholesales, Inc. 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 Furniture Wholesales 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 working 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 Furniture Wholesales, Inc. 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?
Find z(15) = (15-20)/5 = -1
P(x< 15) = P(z< -1) = 0.1587 = 15.87
------------------------------------------------------
b. What percent of the invoices are paid in more than 28 days?
Same process as above.
----------------------------
c. What percent of the invoices are paid in more than 15 days but less than 28 days?
P(x> 15) = P(z> -1) = 0.8413 = 84.13%
-----------------------------------------
d. The management of Furniture Wholesales 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 working days of the receipt of the invoice. What percent of customers will earn this discount
Same process as parts "a" and "b".
====================================================
Cheers,
Stan H.
0 solutions

RELATED QUESTIONS
A study of Hub Furniture regarding the payment of invoices reveals the time from billing... (answered by stanbon)

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

. 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)

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

The Thomas Supply Company, Inc. is a distributor of gas-powered generators. As with any... (answered by stanbon)

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)