The daily demand for six-packs of Coke at Mr. D’sfollows a normal distribution, with a mean of 120 and astandard deviation of 30. Every Monday, the delivery driverdelivers Coke to Mr. D’s. If the store wants to have only a1% chance of running out of Coke by the end of the week,how many six-packs should be ordered for the week?(Assume that orders can be placed Sunday at midnight.)
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!
The daily demand for six-packs of Coke at Mr. D’s
follows a
standard deviation of 30. Every Monday, the delivery driver
delivers Coke to Mr. D’s. If the store wants to have only a
1% chance of running out of Coke by the end of the week,
how many six-packs should be ordered for the week?
(Assume that orders can be placed Sunday at midnight.)
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