Question

(3 marks) Q2. Sales Forecasts. Sales of a product are forecast to be between $12.2m and $14.6m during the first half of this year and between $10.2m and $13.9m during the second half. Assume that the forecasts are Normally distributed and they represent a central range with 0.9 probability (i.e. there is a probability of 0.9 that sales in the first half will be between $12.2m and $14.6m. The probability of being <$12.2m is 0.05 and the probability of being>$14.6m is 0.05.) a) What is the central range with 0.9 probability for total sales during the year b) What is the central range with 0.95 probability for sales during the first half of the year c) What is the central range with 0.95 probability for total sales during the year d) What is the mean plus or minus one standard deviation for sales during the first half of the year e) What is the mean plus or minus 3 standard deviations for total sales during the year f) State any assumptions clearly for each part of this question separately

Answer 1

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