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.
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