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By averaging their profits over each the previous 56 days (8 weeks), a small clothing store in downtown Chicago estimates their daily profit as $472 with a standard deviation of $184. You may assume that the distribution of the variable (profit) was approximately normal. 1. The owner believes that they need to achieve a daily profit of at least $440 on average to remain solvent in the business. On what percentage of days can they expect to do so? 2. On what percentage of days can they expect to turn a profit of between $430 and $480? 3. Thought Question: The standard

By averaging their profits over each the previous 56 days (8 weeks), a small clothing store in downtown Chicago estimates their daily profit as $472 with a standard deviation of $184. You may assume that the distribution of the variable (profit) was approximately normal. 1. The owner believes that they need to achieve a daily profit of at least $440 on average to remain solvent in the business. On what percentage of days can they expect to do so? 2. On what percentage of days can they expect to turn a profit of between $430 and $480? 3. Thought Question: The standard

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Problem #1 By averaging their profits over each the previous 56 days (8 weeks), a small clothing store in downtown Chicago estimates their daily profit as $472 with a standard deviation of $184. You may assume that the distribution of the variable (profit) was approximately normal. 1. The owner believes that they need to achieve a daily profit of at least $440 on average to remain solvent in the business. On what percentage of days can they expect to do so? 2. On what percentage of days can they expect to turn a profit of between $430 and $480? 3. Thought Question: The standard deviation for this store is fairly high. Can you think why this may be? Is there something the owner might do in order to come up with numbers that would allow for improved predictions? Hint: Take a closer look at the first sentence of the problem.
Transcribed Image Text:Problem #1 By averaging their profits over each the previous 56 days (8 weeks), a small clothing store in downtown Chicago estimates their daily profit as $472 with a standard deviation of $184. You may assume that the distribution of the variable (profit) was approximately normal. 1. The owner believes that they need to achieve a daily profit of at least $440 on average to remain solvent in the business. On what percentage of days can they expect to do so? 2. On what percentage of days can they expect to turn a profit of between $430 and $480? 3. Thought Question: The standard deviation for this store is fairly high. Can you think why this may be? Is there something the owner might do in order to come up with numbers that would allow for improved predictions? Hint: Take a closer look at the first sentence of the problem.
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