Question

g If $6200 is budgeted for the next week, what is the probability that the cost will exceed the budgeted amount

Answer 1

0.0401

Step-by-step explanation:

Calculation for the probability that the cost will exceed the budgeted amount

Based on the information given Mean = μ = $5,500 and Standard deviation =σ = $400

P(x > 6,200) = 1 - P(x <6,200 )

= 1 - P((x - μ ) / σ < ( 6,200 - 5,500) / 400)

= 1 - P(z < 1.75 )

= 1 - 0.9599 using the standard normal table,

= 0.0401

P(x > 6,200 ) = 0.0401

Hence,

Probability = 0.0401

Therefore the probability that the cost will exceed the budgeted amount will be 0.0401