Do the following problems. Begin each problem by restating the question. Neatness counts. 25 points.
Minitab may be used, attach or include your output if you use Minitab to find answers.
Ans 1. The weekly demand for Domino’s pizzas on a Friday night is a normally distributed random variable with mean 235 and standard deviation 10, N(235,10). Show your work. (15 points)
You basically need to put up a normal distribution with the given statistics.
Let the random variable X denote the weekly demand. We are given-
X ~ N(μ, σ) where μ = 235 and σ = 10.
Take a look at the image below:
a) Find the probability that demand exceeds 220. (2 points)
To calculate this, we'd have to standardise X. In other words, we'd have to calculate the Z variable corresponding to 220.
Z = (X-μ) / σ = (220-235)/10 = -1.5
Now from the Z-table, let's check the probability of Z > -1.5 (since you need the probability of X > 220)
P(Z>-1.5) = P(-1.5<Z<0) + P(0<Z) = P(0<Z<1.5) + P(0<Z) (By symmetry: Normal distribution curve has the same shape on either side of the line X=μ)
P(Z>-1.5) = 0.4332 + 0.5 = 0.9332
Hence, there's a 93.32% chance that the demand exceeds 220.
b) Find the probability that demand is between 230 and 245. (3 points)
Just like in a) above, we'd calculate the Z values (and their probabilities) of 230 and 245 first.
We get-
Z230 = -0.5 and Z245 = 1
P (0>Z>-0.5) = 0.1915 and P(0<Z<1) = 0.3413
Adding the two we get P(-0.5<Z<1) = 0.5328.
Hence, there's a 53.28% chance that the demand is between 230 and 245.
c) Find the probability that demand greater than 250. (2 points)
Just like above, we'd calculate the Z values and P(Z) for 250.
Z250 = 1.5
We've already calculated in a) that P(0<Z<1.5) = 0.4332
We need to find P(Z>1.5).
P(Z>1.5) = P(Z>0) - P(0<Z<1.5)
P(Z>1.5) = 0.5 - 0.4332
P(Z>1.5) = 0.0668
Hence, there's only a 6.68% chance that the demand will exceed 250.
d) Find the value of X for the lowest 25 percent. (4 points)
Let's assume the Z value at the lowest 25% is given as z1
We have-
P(z1<Z<0) = 0.25
From the standard normal tables we derive z1 = -0.6745 (approx.)
Now lets calculate our X.
We know: Z = (X-μ)/σ
Substituting relevant values we get:
-0.6745 = (X - 235) / 10
-6.745 = X - 235
X = 228.255
Hence, the required X value is 228.255
Do the following problems. Begin each problem by restating the question. Neatness counts. 25 points. Minitab may be used...