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Probability Normal Distribution

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Q.

The manager of a small postal substation is trying to quantify the variation in the weekly
demand for mailing tubes. She has decided to assume that this demand is normally distributed.
She knows that on average 100 tubes are purchased weekly and that 90 percent of the time,
weekly demand is below 115.

A) What is the standard deviation of this distribution?

B) the manager wants to stock enough mailing tubes each week so that the chance of running out of
tubes is not higher than 0.05. Assuming you in place of manager decide the stock level.

Ans:
90%
a)

Z-table for 0.40=1.28

Rejection region

m
er as
0.50 0.40

co
Z=0 Z=1.28

eH w
µ=100 X1=115

o.
The value of Z at 0.40 is 1.28 [from Z-table] one-tail
rs e
ou urc
X 1−μ
Z =
σ
o

115−100
1.28 =
aC s

σ
v i y re

σ = 11.72

b)
ed d

95%
ar stu

Rejection region
sh is

0.50 0.45
Th

Z=0 Z=1.64
µ=100 X2=?

X 2−μ
Z =
σ

X 2−100
1.64 =
11.72

X2 = 120

This study source was downloaded by 100000771688659 from CourseHero.com on 12-04-2021 05:04:06 GMT -06:00

https://www.coursehero.com/file/54265332/Probability-Normal-distributiondocx/
m
er as
co
eH w
o.
rs e
ou urc
o
aC s
v i y re
ed d
ar stu
sh is
Th

This study source was downloaded by 100000771688659 from CourseHero.com on 12-04-2021 05:04:06 GMT -06:00

https://www.coursehero.com/file/54265332/Probability-Normal-distributiondocx/
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