The monthly demand for a product is normally distributed with a mean of 700 units and a standard deviation of 200 units.
(a) What is the probability that demand will exceed 900 units in a given month? (2 points)
Z = (X - µ) / σ
Z = (900 - 700) / 200
Z = 1
Using the standard normal distribution table, the probability of Z being greater than 1 is 0.1587.
(b) What is the probability that monthly demand will be between 848 and 998 units? (2 points)
Z1 = (848 - 700) / 200
Z1 = 0.74
Z2 = (998 - 700) / 200
Z2 = 1.49
Using the standard normal distribution table, the probability of Z being between 0.74 and 1.49 is 0.3413.
(c) What is the probability that monthly demand would be less than 400 units? (1 point)
Z = (400 - 700) / 200
Z = -1.5
Using the standard normal distribution table, the probability of Z being less than -1.5 is 0.0668.