A restaurant sells BBQ fish. It purchases stocks of fish on daily basis. To maintain high standards of quality no leftover fish is used from the previous day. It donates such leftover fish to charities. The restaurant has found that mean daily demand is 800 Kg with a standard deviation demand of 100 Kg. The demand is normally distributed. a) What percent of the times the restaurant has to send left over fish to charities if it purchases 1,100 Kg of fish daily? b) How much fish the restaurant must purchase daily if it wants to meet only up to 95% of the demand?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
A restaurant sells BBQ fish. It purchases stocks of fish on daily basis. To maintain high standards of quality no leftover fish is used from the previous day. It donates such leftover fish to charities. The restaurant has found that mean daily demand is 800 Kg with a standard deviation demand of 100 Kg. The demand is
a) What percent of the times the restaurant has to send left over fish to charities if it purchases 1,100 Kg of fish daily?
b) How much fish the restaurant must purchase daily if it wants to meet only up to 95% of the demand?
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