Question

Last year, the revenue for financial services companies had a mean of 70 million dollars with a standard deviation of 13 million. find the percentage of companies with revenue less than 39 million or more than 101 million dollars. assume that the distribution is normal. round your answer to the nearest hundredth.

Answer 1

To find the percentage of companies with revenue less than $39 million or more than $101 million, calculate the z-scores for these values and use the standard normal distribution table or a statistical calculator to find the corresponding areas.

Step-by-step explanation:

To find the percentage of companies with revenue less than $39 million or more than $101 million, we need to calculate the z-scores for these values. The z-score is calculated by subtracting the mean from the value and dividing by the standard deviation.

Z-score for $39 million: (39 - 70) / 13 = -31/13 = -2.385

Z-score for $101 million: (101 - 70) / 13 = 31/13 = 2.385

Using the standard normal distribution table or a statistical calculator, we can find the area to the left of the first z-score and to the right of the second z-score. The sum of these two areas will give us the percentage of companies with revenue less than $39 million or more than $101 million.