CIMA BA2 · Chapter 9 · Question 7 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 be between 440 and 580 units? (Areas between the mean and z: z = 1.5 is 0.4332; z = 2.0 is 0.4772.)
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 0.9104
Explanation
For 440 units, z = (440 - 500) / 40 = -1.5, area to the mean 0.4332. For 580 units, z = (580 - 500) / 40 = 2.0, area to the mean 0.4772. Because the values lie on opposite sides of the mean, the areas are added: 0.4332 + 0.4772 = 0.9104.
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