On average a shop sells 750 kg per day with

Elaina Conner

Elaina Conner

Answered question

2022-02-13

On average a shop sells 750 kg per day with a standard deviation of 60 kilo’s. We assume sales are normal. If the shop has 850 kilograms in stock at the beginning of the day, what is the probability it runs out that day?

Answer & Explanation

Pamela Webb

Pamela Webb

Beginner2022-02-14Added 10 answers

Roughly a 4.7% chance.
Explanation:
Since we are told that the sales are normal, we can use a normal distribution to answer this problem. We are given a handful of parameters to get started:
{μ750Mean(average)σ60Std.Dev
Let X be the number of kg sold in a day. Then XN(750,602).
If the shop was to sell out in this example, when they start the day with 850 kg, this implies that sales for the day must be at least 850 kg - obviously if the shop "sells" more than 850 kg they will owe products to customers they cant

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