please include how to do it. I get how to find x, The management of a supermarke

Question

please include how to do it. I get how to find x,

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends more than a certain amount per visit at this supermarket. The expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $85 and a standard deviation of $16. If the management wants to give free gifts to at most 10.56% of the customers, what should the amount be above which a customer would receive a free gift? Round your answer to two decimal places. 65 A customer should spend at least to receive a free gift. the absolute tolerance is +/-0.01

Explanation / Answer

Since the management wants to give gifts to only aatmost 10.56% of the customers, we need to find the z score for which area to its right is 0.1056 i.e. area to its left = (1 - 0.1056) = 0.8944

z - score = Normsinv(0.8944) [Excel Formula]

z = 1.25

Hence,

Corresponding X value = 85 + 1.25*16 = 105

Therefore,

A customer should spend atleast $ 105 to receive a free gift.

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