The manager at a local movie theater has collected data for a long period of time and has concluded that the revenue from concession sales during the first show each evening is normally distributed with a mean equal to $336.25 and a variance equal to 1,456. Based on this information, what are the chances that the revenue on the first show will exceed $800?
A) 0.1255
B) Essentially zero
C) 0.3745
D) 0.9999

Question

Quizplus · Accepted Answer

Given the normal distribution of concession sales with a mean of $336.25 and a variance of 1,456 (standard deviation = sqrt(1,456)), the probability of revenue exceeding $800 is extremely low, essentially zero, because $800 is far beyond the mean plus several standard deviations.

The Manager at a Local Movie Theater Has Collected Data