The average monthly sales of 5000 firms are normally distributed.

Its mean and standard deviation

are Rs.36,000 and Rs.10,000 respectively. Find

i) The number of firms having sales over Rs 40,000

ii) The percentage of firms having sales between Rs.38,500 and Rs 41,000.
iii) The number of firms having sales between Rs.30,000 and Rs.40,000.

1. The number of firms having sales over Rs 40,000

Z= 40,000-36,000/10,000=.40 (area between z=0 & z=.40 is .1554)

Required probability of The number of firms having sales over Rs 40,000= .50-.1554 = .3446

Since the number of firms is 5000, hence The number of firms having sales over Rs 40,000 =
5000*.3446= 1723

2. The number of firms having sales between Rs.30,000 and Rs.40,000.

Z= 40,000-36,000/10,000=.40 (area between z=0 & z=.40 is .1554)

Z= 30,000-36,000/10,000= -.60 (area between z=0 and z=.60 is .2257)

Required probability of firms having sales between 30-40k is .1554+.2557= .3811

*5000= 1906

iv) The percentage of firms having sales between Rs.38,500 and Rs 41,000.

Z= 41,000-36,000/10,000= .50 (area between z=0 and z=.50 is .1915)

Z= 38500-36000/10,000= .25 (area between z=0 and z=.25 is .0987)

Required probability= .1915-.0987

= .0928
 2. As a result of tests on 20,000 electric bulbs manufactured by a company, it was found
that the lifetime of the bulbs was normally distributed, with an average life of 2040
hours and standard deviation of 60 hours. On the basis of above information, estimate
the number of bulbs that are expected to burn between
1. 2040 hours and 2150 hours= .4664*20,000= 9328
2. 1960 and 2040 hours= .4082*20,000= 8164
Interval Estimate: for a Population mean

When the sample size is large: z value

When sample is small: t value

A FIRM HAS APPOINTED A LARGE NUMBER OF DEALERS ALL OVER THE COUNTRY TO SELL ITS
BICYCLES. IT IS INTRESTED IN KNOWING THE AVERAGE SALE PER DEALER. A RANDOM SAMPLE OF 25
DEALERS IS SELECETED FOR THIS PURPOSE. THE SAMPLE MEAN IS Rs.50,000 and dev is Rs.20,000.
Construct an interval estimate with 5% level of significance (t value at 5% level of significance and 24
degree of freedom is 2.064).

LP= 50,000- 2.064(20,000)/SQRT(25)

= 50,000- 2.064(4,000)

= 50,000-8256

= 41744

UP=50,000+2.064(4,000)

=58256

We are 95% confident that the interval estimate of Rs. 41,744 to Rs.58,256 contains the population
mean.

A random sample of 400 firms was taken to find out the average sale per customer. The sample
mean was found to be Rs.900 and standard deviation Rs.200. Construct an interval estimate of
population mean with 5% level of significance( z value is 2).

Lp= 900-2(200)/srt(400)

= 880

Up= 920