Question

The revenue of 200 companies is plotted and found to follow a bell curve. The mean is $452.558 million with a standard deviation of $32.3138 million. Would it be unusual for a randomly selected company to have a revenue below $400.54 million?

Question 12 options:

1)	The value is unusual.

2)	It is impossible for this value to occur with this distribution of data.

3)	We do not have enough information to determine if the value is unusual.

4)	The value is not unusual.

5)	The value is borderline unusual.

Answer 1

Given that

mean = 452.558

standard deviation= 32.3138

We have to find probability for a revenue below 400.54

P(X<400.54) = normalcdf(lower, upper, mean, sd)

setting lower = -999

upper= 400.54

mean = 452.558

standard deviation(sd)= 32.3138

we get

P(X<400.54) = normalcdf(-999,400.54,452.558,32.3138)

= 0.0537

it is clear that this probability is greater than the cut off value of 0.05

So, it is not unusual probability as it is greater than 0.05

option 4 is correct