document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=948603>Question 948603</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The monthly sales of mufflers in the Richmond, VA area follow the normal distribution with a mean of 1200 and a standard deviation of 225. The manufacturer would like to establish inventory levels such that there is only a 5% chance of running out of stock. Where should the manufacturer set the inventory levels? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #579011 by </B><A HREF=/tutors/aboutme.mpl?userid=reviewermath><B>reviewermath(1029)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=reviewermath><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=reviewermath><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=579011\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The monthly sales of mufflers in the Richmond, VA area follow the normal distribution with a mean of 1200 and a standard deviation of 225. The manufacturer would like to establish inventory levels such that there is only a 5% chance of running out of stock. Where should the manufacturer set the inventory levels?\r<BR>\n" );
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document.write( "P(Z > 1.645) = 0.05<BR>\n" );
document.write( "Therefore, inventory level should be at least<BR>\n" );
document.write( "1.645*sd + mean = 1.645*225 + 1200 &#8776; 1571   (rounded up)  [Answer]  </SPAN>\n" );
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