The monthly sales of mufflers in the Richmond, VA area follow a normal distribution, with a mean of 1,200 and a standard deviation of 225. The manufacturer would like to establish inventory levels such that there is no more than a 5% chance of running out of stock. What level should the manufacturer select as the minimum inventory level?
The solution calculates the minimum inventory level for avoiding a stock out situation using normal distribution.
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- 266585-statistics-Normal Distribution.xls
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