The profit p in thousands of dollars that a manufacturer makes is a function of the number N of items produced in year and the f
1 answer:
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Answer with Step-by-step explanation:
Since the demand is normally distributed the required probability can be found from the area under the normal distribution curve as
Part a)
Given mean = 4500 yards per month
Standard deviation = 900 yards
Thus area under the curve corresponding to 6000 yards is found from the standard variate factor Z as
Area for Z = 1.67 = 95.22%
Thus the probability that the demand will be met is 0.9522 hence the probability that the demand will not be met is
Part b)
The reuired answer is area between 5000 and 7000 yards in the normal distribution curve thus we have
.
The area between these 2 values is 49.73% hence the reuired probability is 0.4973.
Part c)
For 97% satisfaction of demand the Z factor corresponding to 97% of area is found to be 1.88
thus we can write