Suppose that the quarterly sales levels among the health care information systems companies are approximately normally distributed with a mean of 8 million dollars and a standard deviation of 1.2 million dollars. One health care information systems company considers a quarter a "failure" if its sales level that quarter is the bottom 15% of all quarterly sales levels. Determine the sales level (in millions of dollars) that is the cutoff between quarters that are considered "failures" by that company and quarters that are not. Carry intermediation computations to at least 4 decimal places. Round answer to 1 decimal place.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Suppose that the quarterly sales levels among the health care information systems companies are approximately
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
