Question

A producer has a history of making bad movies. The movies he has produced have

averaged $160,000 dollars at the box office with a standard deviation of $185,000.
He thinks his latest movie will be a huge hit. How much will the movie earn at the
box office if it is only expected to earn that much or more 0.5% of the time?

Answer 1

it will make $774,200

Explanation:

μ = 160000

σ = 185000

P(x ≥ a) = 0.5%

P(Z ≥ a-160000/185000) = 0.005

According to the table attached.

P(0 ≤ Z ≤ a-160000/185000) = 0.5 - 0.005 = 0.4995

a-160000/185000 = 3.32

a - 160000 = 614000

a = 774200