Normal Distribution

QUESTION 1
(a) Give two business uses of the normal distribution.(4 marks)
(b) A factory that manufactures microwave cooker casings has a three stage production process; cutting, forming
and painting. Assume the times for each process are independently normally
distributed as follows:
Cutting: mean time 16 seconds with standard deviation 2 seconds
Forming: mean time 20 seconds with standard deviation 3 seconds
Painting: mean time 40 seconds with standard deviation 5 seconds.
At the painting stage, calculate the proportion of items that:
(i) take more than 48 seconds to produce
(ii) take more than 36 seconds to produce. (5 marks)
For a complete casing, calculate the proportion of items that are produced:
(iii) in under 60 seconds
(iv) between 70 seconds and 80 seconds. (11 marks) (Total 20 marks)

QUESTION 2
A company’s largest selling product has average weekly sales of 2500 units with standard deviation
250 units. Assume that weekly sales are normally distributed.
(a) Find the probability that weekly sales:
(i) exceed 3050 units
(ii) lie between 3100 units and 2200 units (8 marks)
(b) Find the level of sales which will be exceeded on 90% of occasions. (3 marks)
The same company is planning the launch of a new product. It estimates that the probability of good
economic conditions is 70%. If economic conditions are good the probability of the workforce accepting a new wage
offer is 30%; if economic conditions are poor the probability of the workforce accepting a new wage offer is 50%.
(c) Find the probability that the wage offer is accepted. (5 marks)
(d) If the wage offer is accepted what is the probability that the economic conditions were poor.
(4 marks) (Total 20 marks)
QUESTION 3
(a) Describe the characteristics of the Normal Distribution. (4 marks)
(b) The weekly demand for a product is normally distributed with mean of 2400 units and standard deviation of 400
units.
Calculate the probability that weekly demand is
(i) less than 1800 units
(ii) between 2200 units and 2800 units. (8 marks)
(c) Individual units of the product have a mean weight of 250 grams with a standard deviation of 10 grams, the
weights are normally distributed. The product is packed in boxes of 12 units.
(i) Calculate the mean weight and standard deviation of the contents of a box of 12 units. (5 marks)
(ii) What weight should the company quote for the weight of the contents of a box if it wishes it to be exceeded on
99% of occasions?
(3 marks) (Total 20 marks)