Question

General hospital’s patient account division has compiled data on the age of accounts

receivable. The data collected indicate that the age of the accounts follows a normal distribution with μ = 28 days and σ = 8 days.

1. what portion of the accounts is between 20 and 40 days old—that is, P(20 ≤ x ≤ 40)?
2. The hospital administrator is interested in sending reminder letters to the oldest 15% of accounts. how many days old should an account be before a reminder letter is sent?
3. The hospital administrator wants to give a discount to those accounts that pay their balance by the twenty-first day.
4. What percentage of the accounts will receive the discount?

Answer 1