Question

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends more than a certain amount per visit at this supermarket. The expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $75 and a standard deviation of $25. If the management wants to give free gifts to at most 11.9% of the customers, what should the amount be above which a customer would receive a free gift?

Round your answer to two decimal places.

A customer should spend at least $ to receive a free gift.

Answer 1

This is a normal distribution question with

Given in the question

P(X > x) = 0.119

1 - P(X > x) = 1 - 0.119

P(X < x) = 0.881

This implies that

P(Z < 1.180000540347729) = 0.881

With the help of formula for z, we can say that

With the help of formula for z, we can say that

PS: you have to refer z score table to find the final probabilities.

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answered by: anonymous