The demand for a daily newspaper at a newsstand at a busy intersection is known to be normally distributed with a mean of 150 and a standard deviation of 25. How many newspapers should the newsstand operator order to ensure that he runs short on no more than 20% of days

Respuesta :

Answer:

171 newspapers.

Step-by-step explanation:

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the zscore of a measure X is given by:

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

In this problem, we have that:

[tex]\mu = 150, \sigma = 25[/tex]

How many newspapers should the newsstand operator order to ensure that he runs short on no more than 20% of days

The number of newspapers must be on the 100-20 = 80th percentile. So this value if X when Z has a pvalue of 0.8. So X when Z = 0.84.

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

[tex]0.84 = \frac{X - 150}{25}[/tex]

[tex]X - 150 = 0.84*25[/tex]

[tex]X = 171[/tex]

So 171 newspapers.