Question

Help ASAP Please!! Suppose that the quarterly sales levels among health care information systems companies are approximately normally distributed with a mean of 12 million dollars and a standard deviation of 1.3 million dollars. One health care information systems company considers a quarter a "failure" if its sales level that quarter is in the bottom 20% 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 your intermediate computations to at least four decimal places. Round your answer to one decimal place.

Answer 1

Answer:

Given,

Mean = 12

Standard deviation = 1.3

From the given data,

P(Z < z) = 20% = 0.20

Since from the standard normal table

P(Z < - 0.8420) = 0.20

i.e.,

z = - 0.8420

Now consider,

X = z* +

substitute the known values

= -0.8420*1.3 + 12

= - 1.0946 + 12

= 10.9054

x = 10.9