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A chain of coffee shops is experiencing financial pressures due to increased competition for its numerous urban coffee shops. Total sales revenue has dropped by
A chain of coffee shops is experiencing financial pressures due to increased competition for its numerous urban coffee shops. Total sales revenue has dropped by 15% and the company wishes to establish a sales monitoring process to identify the shops that are under- and overperforming. Historically, monthly sales at the coffee shops have behaved like a normal variable, with mean sales for a shop of $15,300 and variance of 3,000,000. a. For a given coffee shop, what is the likelihood to observe monthly sales within 1.5 standard deviation from the average? (Round to two decimal places.) b. The chain management's monitoring plan involves identifying under- and overperforming shops based on their monthly sales. The chain management will designate as "underperforming" coffee shops with sales in the bottom 5 percent. What is the monthly sales amount below which a shop will be labeled as "underperforming"? (Round to an integer value.) c. An analyst considers a sample of 25 coffee shops. What is the chance that fewer than 2 of them would be labeled as "overperforming"? (Round to two decimal places.) If needed, you can use the cumulative probability tables and the online calculator below: Normal distribution (to rotate the table: see top right of browser): https://Ims.ozyegin.edu.tr/pluginfile.php/260879/mod_resource/content/0/StandardNormalCumulativeProbabilitiesTable_2.pdf Binomial distribution (to rotate the table: see top right of browser)
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