# An expert response to: Normal Probability

Chapter 7, problem 37 - The net sales and the number of employees for aluminum fabricators with similar characteristics are organized into frequency distributions. Both are normally distributed. For the net sales, the mean is $180 million and the standard deviation is $25 million. For the number of employees, the mean is 1,500 and the standard deviation is 120. Clarion Fabricators had sales of $170 million and 1,850 employees.

a. Convert Clarion's sales and number of employees to z values.

b. Locate the two z values.

c. Compare Clarion's sales and number of employees with those of the other fabricators.

Chapter 7, problem 41 - Shaver Manufacturing, Inc. offers dental insurance to its employees. A recent study by the Human Resource Director shows the annual cost per employee per year followed the normal distribution, with a mean of $1,280 and a standard deviation of $420 per year.

a. What fraction of the employees cost more than $1,500 per year for dental expenses?

b. What fraction of the employees cost between $1,500 and $2,000 per year?

c. Estimate the percent that did not have any dental expense.

d. What was the cost for the 10 percent of employees who incurred the highest dental expense?

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#### Solution Summary

The solution provides step by step method for the calculation of probability based on normal distribution. Formula for the calculation and Interpretations of the results are also included.