Your company is considering submitting a bid on a major project.You determine that the expected completion time is 150 weeks and the standard deviation is 10 weeks.It is assumed that the normal distribution applies.You wish to set the due date for the project such that there is a 95 percent chance that the project will be finished by this time.What due date should be set?
A)108.0
B)160.4
C)166.5
D)135.0

Question

Quizplus · Accepted Answer

First, we need to find the z-score that corresponds to a 95% probability of completing the project on or before the due date. This can be found using a standard normal distribution table or calculator as follows:

z-score = invNorm(0.95) = 1.645

Next, we can use the formula z = (X - μ) / σ to solve for the due date, where X is the due date we want to find, μ is the expected completion time, σ is the standard deviation, and z is the z-score we just calculated.

Solving for X, we get:

1.645 = (X - 150) / 10
X - 150 = 16.45
X = 166.45

Rounding to one decimal place, the due date should be set at 166.5 weeks. Therefore, the best choice is C.

Your Company Is Considering Submitting a Bid on a Major