Question

After collecting the data, Johnathan finds that the daily sales revenue of a small business is normally distributed with a mean of $350 and a standard deviation of $18. What is the probability that a randomly selected day's revenue is less than $368? Use the empirical rule to compute the probability.

Answer 1

To compute the probability that a randomly selected day's revenue is less than $368, we can use the empirical rule. According to the empirical rule, approximately 68% of the data falls within one standard deviation of the mean.

Step-by-step explanation:

To compute the probability that a randomly selected day's revenue is less than $368, we can use the empirical rule. According to the empirical rule, approximately 68% of the data falls within one standard deviation of the mean, approximately 95% falls within two standard deviations, and more than 99% falls within three standard deviations.

Since the mean is $350 and the standard deviation is $18, one standard deviation above the mean is $350 + $18 = $368. Therefore, the probability that a randomly selected day's revenue is less than $368 is approximately 68%.