650-Q7

A marketing manager of a leading firm believes that total sales for the firm next year can be modelled by using a normal distribution, with a mean of $2.5 million and a standard deviation of $300000. Using Excel (provide step-by-step guide or formula):

a.What is the probability that the firm's sales will exceed $3 million?

b.In order to cover fixed costs, the firm's sales must exceed the breakeven level of $1.8 million. What is the probability that sales will exceed the break-even level?

c.Determine the sales level that has only a 9% chance of being exceeded next year.