A business analyst is researching demand levels for a larger cell phone (for vis

Question

A business analyst is researching demand levels for a larger cell phone (for vision-impaired persons). She finds that demand is normally distributed with a mean of 600 units/week and a known standard deviation of 100 units/week. What is the probability the demand will exceed 750 units/week? A. .0668 B. .1587 C. .4500 D. .7668 Using the information in Question #1 above, if the analyst wants to meet demand 80% of the time; what inventory level will she recommend to keep on hand each week? A. 728 B. 694 C. 684 D. 528 Using the information in Question #1 above, what is the probability the average demand will less than 650 units/week? Assume that we select a random sample of 10 cases. A. .0678 B. .0587 C. .4300 D. .9429

Explanation / Answer

(1) = 600, = 100, x = 750

z = (x - )/ = (750 - 600)/100 = 1.5

P(x > 750) = P(z > 1.5) = 0.0668

Option A

(2) z- score such that 80% of the area lies to its left is z = 0.8416

x = + z * = 600 + 0.8416 * 100 = 684.16

Option C

(3) = 600, = 100, n = 10, x-bar = 650

z = (x-bar - )/(/n) = (650 - 600)/(100/10) = 1.5811

P(x-bar < 650) = P(z < 1.5811) = 0.943

Option D.

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