A high end store is looking to open new stores, but requires that 85% of the households in a community have an income of $90,000 or more in order to support the store. If the household incomes in a certain community are normally distributed with a mean of $98,000 and a standard deviation of $5,000, will the store open in that community? Explain why or why not.

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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A high end store is looking to open new stores, but requires that 85% of the households in a community
have an income of $90,000 or more in order to support the store. If the household incomes in a certain
community are normally distributed with a mean of $98,000 and a standard deviation of $5,000, will the
store open in that community? Explain why or why not.
Transcribed Image Text:A high end store is looking to open new stores, but requires that 85% of the households in a community have an income of $90,000 or more in order to support the store. If the household incomes in a certain community are normally distributed with a mean of $98,000 and a standard deviation of $5,000, will the store open in that community? Explain why or why not.
Expert Solution
Step 1

Let X= income of the households 

Given that X is normally distributed with mean= 98000 and standard deviation= 5000

 

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