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Statistics: Determining Normal Distribution

Operations and production managers often use the normal distribution as a probability model to forecast demand in order to determine inventory levels, manage the supply chain, control production and service processes, and perform quality assurance checks on products and services. The information gained from such statistical analyses help managers optimize resource allocation decisions and reduce process times, which in turn often improves contribution margins and customer satisfaction.

Based on your understanding of the characteristics of the normal distribution, examine the attached chart (assume that the process specifications have a lower bound of 9 and an upper bound of 15),
-Does either of the processes fit a normal distribution? Why or why not?


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Yes. Both Process A and B fit Normal distribution.

The Curve for both processes is bell shaped (Symmetrical). Also, it can be seen that the tails of both the curves have very little area (But not zero. i.e. the curve does not taper down to zero). Also, Most of the area (more than 99%) is contained ...

Solution Summary

The normal distributions in statistics are determined. Contribution margins and customer satisfactions are given.