Question 370339
Suppose that management believes that
guarding against the first type of error, unmet demand, is most important and
would like to set the number of papers printed at a level such that 75% of the time, demand for newspapers will be lower than that point. How many papers should be printed daily if the average demand is 34,750 papers and the standard deviation of demand is 3,560?
-----
Find the z-value that has a left tail of 0.75.
invNorm(0.75) = 0.6745
---
Find the corresponding x-value.
----
x = zs+u
x = 0.6745*3560+34750 = 37151 papers printed daily
==================
Cheers,
Stan H.