Mother's Day is coming soon and your boss at the local Shirley's Flowers is concerned about ordering hydrangeas. She does not want to stock too many or too few. From the past five year’s sales history, you know that Shirley's Flowers’s average demand for hydrangeas is 246 with a standard deviation of 20.03. Shirley's Flowers purchases hydrangeas for $8 and sells them for $12. If Shirley's Flowers is not able to sell all hydrangeas during the Mother's Day season, then the plants are sold for half price. Your boss is totally overwhelmed with this task, and asks you to help her determine how many hydrangeas Shirley's Flowers should order this year. How many should she order? answer: 264 246 255 272
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!
Mother's Day is coming soon and your boss at the local Shirley's Flowers is concerned about ordering hydrangeas. She does not want to stock too many or too few. From the past five year’s sales history, you know that Shirley's Flowers’s average demand for hydrangeas is 246 with a standard deviation of 20.03. Shirley's Flowers purchases hydrangeas for $8 and sells them for $12. If Shirley's Flowers is not able to sell all hydrangeas during the Mother's Day season, then the plants are sold for half price. Your boss is totally overwhelmed with this task, and asks you to help her determine how many hydrangeas Shirley's Flowers should order this year.
How many should she order?
answer:
|
264 |
|
|
|
246 |
|
|
255 |
|
|
272 |
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