Question
The owner of a small restaurant is trying to quantify the variation in the daily demand for takeout lunches. She has decided to assume that
The owner of a small restaurant is trying to quantify the variation in the daily demand for takeout lunches. She has decided to assume that the demand is normally distributed. She knows on average 100 takeout lunches are purchased daily and that 90% of the time, the daily demand is below 116.
a) What is the standard deviation of this distribution?
b) The owner of the restaurant wants to stock enough boxes each day so that the probability of running out of boxes is no higher than 0.05. What is the lowest number of boxes she should stock to achieve this?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started