Question: General Hospitals patient account division has compiled data on the age of accounts receivable. The data collected indicate that the age of the accounts follows

General Hospital’s patient account division has compiled data on the age of accounts receivable. The data collected indicate that the age of the accounts follows a normal distribution with µ= 28 days and σ = 8 days.

a. What portion of the accounts is between 20 and 40 days old—that is, P(20 ≤ x ≤ 40)?

b. The hospital administrator is interested in sending reminder letters to the oldest 15% of accounts. How many days old should an account be before a reminder letter is sent?

c. The hospital administrator wants to give a discount to those accounts that pay their balance by the 21st day. What percentage of the accounts will receive the discount?

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