CIMA BA2 · Chapter 9 · Question 6 of 11
The weekly demand for a product is normally distributed with a mean of 500 units and a standard deviation of 40 units. What is the probability that demand in a week will exceed 560 units? (The area under the normal curve between the mean and z = 1.5 is 0.4332.)
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 0.0668
Explanation
z = (560 - 500) / 40 = 1.5. The area between the mean and z = 1.5 is 0.4332. Half the distribution lies above the mean, so the probability of exceeding 560 = 0.5000 - 0.4332 = 0.0668.
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