Suppose that the quarterly sales levels among health care information systems co

Question

Suppose that the quarterly sales levels among health care information systems companies are approximately normally distributed with a mean of 9 million dollars and a standard deviation of 1.2 million dollars. One health care information systems company considers a quarter a "failure" if its sales level that quarter is in the bottom 15% of all quarterly sales levels. Determine the sales level (in millions of dollars) that is the cutoff beweer quarters that are considered "failures" by that company and quarters that are not. Carry your intermediate computations to at least four decimal places. Round your answer to at least one decimal place

Explanation / Answer

z score corresponding to bottom 15% of the area = -1.0364

Hence,

Cutoff value = 9 - 1.0364*1.2

Cutoff value = 7.8 million dollars

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