Camille is negotiating a contract with a new customer to deliver one of the comp

Question

Camille is negotiating a contract with a new customer to deliver one of the components for their product. She estimates that on average you should be able to deliver the product in 8 hours once the customer places the order. Based on historical data, she believes it is reasonable to assume the standard deviation is 1 hour and that actual delivery times are normally distributed.The customer also wants you to pay a penalty on deliveries that do not arrive within 9 hours. She can expect to pay a penalty on____ % percent of the deliveries if she accept his terms

Explanation / Answer

P(x>9)

= P(z>(9-8)/1)

= P(z>1)

= 15.87% ( rounded to two decimal places)

So, She can expect to pay a penalty on 15.87 % percent of the deliveries if she accept his terms

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