A warehouse distributor of carpet keeps 6,000 yards of deluxe shag carpet in stock during a month. The average demand for carpet from the stores that purchase from the distributor is 4,500 yards per month, with a standard deviation of 900 yards. What is the probability that a customer’s order will not be met during a month? (This situation is referred to as a stockout.)

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Answer:

The probability that a customer’s order will not be met during a month is 1.67.

Step-by-step explanation:

Given : A warehouse distributor of carpet keeps 6,000 yards of deluxe shag carpet in stock during a month. The average demand for carpet from the stores that purchase from the distributor is 4,500 yards per month, with a standard deviation of 900 yards.

To find : What is the probability that a customer’s order will not be met during a month?

Solution :

Average Mean [tex]\mu=4500[/tex]

Sample Mean [tex]x=6000[/tex]

Standard deviation [tex]\sigma=900[/tex]

The formula is given by,

[tex]Z=\frac{x-\mu}{\sigma}[/tex]

Substitute the value in the formula,

[tex]Z=\frac{6000-4500}{900}[/tex]

[tex]Z=\frac{1500}{900}[/tex]

[tex]Z=1.67[/tex]

The probability that a customer’s order will not be met during a month is 1.67.