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Math Help - Normal distribution.

  1. #1
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    Normal distribution.

    Right, so I've missed quite alot in school and now started revising earlier than I would've. It might not even fall under the 'Advanced' category, sorry if that's the case. Stats don't make sense to me at all so please help.

    If the costs of completion of a building are normally distributed with a mean of $700,000 and a standard deviation of $150,000, what are the chances of making a profit if the promised return is $1,000,000 and how much has to be obtained in order to have a 90% chance of making a profit?

    Cheers for any tips.
    Last edited by mr fantastic; March 28th 2011 at 07:55 PM. Reason: Re-titled.
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  2. #2
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    Ok, it seems you should find a z-score here.

    \displaystyle z=\frac{x-\mu}{\sigma} =\frac{x-700000}{150000}

    Now is the 1000000 also a building cost? if so make it x in the above equation.
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  3. #3
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    Nah, the $1bn is not the building cost, it's supposed to be expected profit which confuses me quite alot
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  4. #4
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    I thought so, that isn't to helpful in this situation. Did you post the whole question?

    Just for your reference, its actually 1 million dollars not 1 billion.
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