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# Confidence Interval

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Norm Dickins the town pharmacist is interested in obtaining a loan to expand his business. He will get a better interest rate if he can reasonably demonstrate that his near-term monthly revenues will be between \$10,000 and \$15,000. He doesn't know the exact level of sales to expect over the next several months, but based on past experience, he knows it should be around \$13,000. He also knows that his sales vary by about \$2,500 from month to month. What is the probability that his store will generate the revenue required for him to obtain a favorable loan rate?

##### Solution Summary

The solution addresses Norm Dickins the town pharmacist is interested in obtaining a loan to expand his business. He will get a better interest rate if he can reasonably demonstrate that his near-term monthly revenues will be between \$10,000 and \$15,000. He doesn't know the exact level of sales to expect over the next several months, but based on past experience, he knows it should be around \$13,000. He also knows that his sales vary by about \$2,500 from month to month. What is the probability that his store will generate the revenue required for him to obtain a favorable loan rate?

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This is a confidence interval problem:
<br>His average revenue is 13000, and standard deviation is 2500
<br>Then we are to find the probability that next ...

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