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b. Compute the probability that the sale will be with in +- 1 standard deviation

ID: 3328815 • Letter: B

Question

b. Compute the probability that the sale will be with in +- 1 standard deviation of the mean total sales

c. Determine the median total sale

A purveyor of designer maternity wear sells dresses and pants priced around $200 each for an average total sale of $1,200. The total sale has a normal distribution with a standard deviation of $400. Complete parts a through c below. a. Calculate the probability that a randomly selected customer will have a total sale of more than $1,500 The probability is (Round to four decimal places as needed.)

Explanation / Answer

a. = 1200 = 400

X = 1500

Z = (X - ) /

= (1500 - 1200) / 400

= 0.75

From Z table P(Z > 0.75) = 0.2266.

b. P(Z < -1) = 0.1587

P(Z < 1) = 0.8413

=> P(-1 < Z < 1) = 0.8413 - 0.1587 = 0.6826.

c. Since the distribution is normal,

Median total sale = Mean = $1200.