The weekly amount of money spent on repairs and maintenance by a company was observed over a long period of time to be approximately normally distributed with a mean of $400 and standard deviation of $20. If $450 is budged for next week for repairs, what is the probability that th eactual costs will exceel the budgeted amount?

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Business

Matthew Barr

25 June, 01:56

The weekly amount of money spent on repairs and maintenance by a company was observed over a long period of time to be approximately normally distributed with a mean of $400 and standard deviation of $20. If $450 is budged for next week for repairs, what is the probability that th eactual costs will exceel the budgeted amount?

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Vivian Salazar · Answer 1

Mean = 400

Sd = 20

Hypothesis Costs > 450

(400-450) / 20

=-50/20 = - 2.5 is the value

look up the z value in the z table

Probability = 0.0054

=0.54% chances that the costs will exceed the budgeted amount