In Exercise 4.64, how much should be budgeted for weekly

Chapter 4, Problem 65E

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QUESTION:

In Exercise 4.64, how much should be budgeted for weekly repairs and maintenance to provide

that the probability the budgeted amount will be exceeded in a given week is only .1?

Questions & Answers

QUESTION:

In Exercise 4.64, how much should be budgeted for weekly repairs and maintenance to provide

that the probability the budgeted amount will be exceeded in a given week is only .1?

ANSWER:

Solution:

Step 1 of 2:

It is given the money spent on repairs and maintenance by a company has Normal distribution with mean $400 and standard deviation $20.

We need to find the amount to be budgeted to get the probability that the cost exceeds in a week as 0.1.


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