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?© BrainMass Inc. brainmass.com March 4, 2021, 5:47 pm ad1c9bdddf
We obtain the mean and standard deviation from the statement of the problem
M = 13000 =mean
s= 2500 ...
Calculates probability using Normal Distribution