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The Manager of an Accounting Firm believes that total profit

Customer Question

The Manager of an Accounting Firm believes that total profit of the firm next year can be
modeled by using a normal distribution, with a mean of \$870,000 and a standard deviation of
\$150,000.
(a) What is the probability that the firm’s total profit will exceed \$1,210,000?
(b) What is the probability that the firm’s profit will fall to within \$270,000 of the expected
level of profit (ie. mean profit)?
(c) In order to cover fixed costs, the firm’s profit must exceed the break-even level of profit
of \$950,000. What is the probability that profit will exceed this break-even level?
(d) Determine the profit level that has only 8% chance of being exceeded next year.
Submitted: 1 year ago.
Category: Business and Finance Homework
Expert:  Ryan replied 1 year ago.
Hi,
Welcome! Thank you for using the site.
Here are the solutions:
StatSolutions
Please feel free to ask if you have questions about any of these solutions. I'll be happy to explain anything that is not clear.
Thanks,
Ryan