Question

Consignment Sale. Just Between Friends is the leading pop-up consignment sales event franchise in North America. The Des Moines event for Just Between Friends takes place each year at the Iowa State Fairgrounds for one week in the spring and one week in the fall. Families can earn money on gently used baby clothes, baby gear, maternity items, kids' clothes, shoes, toys, and books. Families sign-up as consignors and then price and tag their own items. At the end of the sale, consignors are given a check based on their item sales. Using historical records, the Des Moines event organizers advertise that their consignor check amounts follow a bell-shaped distribution (symmetric and unimodal) with a mean of $480 and a standard deviation of $110. Use the Empirical Rule: What percentage of consignors receive a check for more than $370

Answer 1

Just Between Friends

The percentage of consignors who receive a check for more than $370 is:

= 16%.

Explanation:

Mean of consignor check, μ = $480

Standard deviation, σ = $110

Value of check received, x > $370

Solution: find the z-score to determine the percentage of consignors who receive a check for more than $370:

z = (x-μ)/σ

z= ($370 - $480)/$110

z = -$110/$110

z = -1.00

Percentage of consignors who receive a check for more than $370

= 0.15866

= 0.16

= 16%