ssigned as Ape Apex Machinery manufactures large earth-moving equipment. Their s

Question

ssigned as Ape Apex Machinery manufactures large earth-moving equipment. Their sales for a particular machine had been averaging $450,000/month with a standard deviation of $100,000. 36 months ago, they were forced to recall some machines because of a safety defect. For the 36 months since the recall their sales have averaged $430,000. (Sales were nonseasonal and the 36 months can be assumed to be a random sample). What is the probability of Apex's average sales dropping to this point or lower if the recall had no effect on their true average sales? (3 decimals) Numeric Answer:

Explanation / Answer

Z = (X - 450000)/100000

P(X < 430000)

= P(Z < ( 430000 - 450000)/100000)

= P(Z< -0.2)

= 0.4207

= 0.421

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