Dallas Green Homes uses a normal curve to estimate next year's demand.The distribution has a mean of 163 units and a standard deviation of 36 units.According to this demand distribution, how likely is it that demand will be less than 80 units?
A).0362
B).0551
C).0104
D).0989
E).1127

Question

Quizplus · Accepted Answer

To find the likelihood that the demand will be less than 80 units, we calculate the Z-score using the formula Z = (X - μ) / σ, where X is the value in question (80 units), μ is the mean (163 units), and σ is the standard deviation (36 units). Plugging in the values, we get Z = (80 - 163) / 36 = -83 / 36 ≈ -2.31. Looking up the Z-score of -2.31 in a standard normal distribution table or using a calculator gives us a probability of approximately 0.0104, indicating that there is a 1.04% chance that the demand will be less than 80 units.

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