Question

The sales department has determined that the average purchase value for their catalog business is normally distributed with a mean of $41.34 and a standard deviation of $13.54. What is the purchase value at the 30th percentile

Answer 1

Answer:

The purchase value at the 30th percentile=34.24

Step-by-step explanation:

We are given that

Mean,$\mu=41.34$

Standard deviation,$\sigma=13.54$

We have to find the purchase value at the 30th percentile.

$xth percentile =\mu+Z\times \sigma$

Where Z is the critical value of x% confidence interval

x=30

Critical value of Z at 30% confidence interval=-0.5244

Using the formula

30th percentile=$41.34+(-0.5244)(13.54)$

30th percentile=$41.34-7.100376$

30th percentile$\approx 34.24$

Hence,  the purchase value at the 30th percentile=34.24