ERRATA

STATISTICS FOR MANAGEMENT: MB0040

Solved Problem 16: The sales volume of 1000 retail outlets of a soap company follows Normal
distribution. 20% of retail outlets sell less than 50 units per day and 15% of them sells 200 unit and
above. Find:
         i.      The mean and standard deviation of the sales volume

       ii.      The expected number of retail outlets that sells units between 50 and 148 units

Wrong Solution: Let ‘m’ and ‘s’ be the mean and standard deviation. The given
information can be represented in a graph as shown in figure 6.7.

Given that:

Ρ (50≤x≤ Χ )=0.30
50−Χ
⇒Ρ [ σ
≤Ζ≤0=0 . 30 ]
50−Χ
⇒Ρ [ σ
≤Ζ≤0=0 . 30 ]
∴200−Χ=1.04σ ................. ( 2 )
−50±Χ=±0.84σ ................. ( 1 )
And
Ρ ( Χ≤x≤200 )=0 .35
200−Χ
[
⇒ Ρ 0 ≤Ζ≤
200−Χ
σ ]
=0.35

⇒ =1 .04
σ
200− Χ=1.04 σ ............... ( 2 )
−50±¿−0 . 84 σ
150=1 . 88 σ
−50±¿−0 . 84 σ
150=1 . 88 σ
……………………(1)

50+0.84σ=Χ from ( 1 )
or 50+0.84∗79.8=Χ
Χ =117

ii.The probability that the retail outlets that sell units between 50 and 148 is given by:

Ρ (50≤Χ ≤148 )=Ρ ( 50≤Χ ≤117 )+Ρ ( 117≤ Χ≤148 )

50−117 148−117
=Ρ [ 79.8 ] [
≤Ζ≤0 + Ρ 0≤Ζ≤
79.8 ]
=0.2995+0.1480=0.4475

Expected number of units = 10000 x 0.4475 = 447.5 @ 448

UNIT – 6: THEORITICAL DISTRIBUTION

CORRECT SOLUTION: Let ‘m’ and ‘s’ be the mean and standard deviation. The
given information can be represented in a graph as shown in figure 6.7.

Given that:

Ρ (50≤x≤Χ )=0.30
50−Χ
⇒Ρ [ σ
≤Ζ≤0=0 . 30 ]
50−Χ
=Ρ [ σ ]
=−0 .84

or 50−Χ=−0.84σ ................. (1 )
−50+Χ =0.84 σ................. ( 1 )
And
Ρ ( Χ≤x≤200 )=0 . 35
200−Χ
[
⇒ Ρ 0≤Ζ≤
200−Χ
σ ]
=0 .35

⇒ =1 .04
σ
200−Χ=1.04 σ ............... ( 2 )
−50+X =0 . 84 σ
150=1 . 88 σ
−50+X =0 . 84 σ
150=1 . 88 σ
……………………(1)

50+0.84σ=Χ from ( 1 )
or 50+0.84∗79.8=Χ
Χ =117

ii.The probability that the retail outlets that sell units between 50 and 148 is given by:

Ρ (50≤Χ ≤148 )=Ρ ( 50≤Χ ≤117 )+Ρ ( 117≤ Χ≤148 )

50−117 148−117
=Ρ [ 79 .8 ] [
≤Ζ≤0 +Ρ 0≤Ζ≤
79.8 ]
=0.2995+0 .1480=0 .4475

Expected number of units = 10000 x 0.4475 = 447.5 @ 448

The probability that the retail outlets that sell units between 50 and 148 is given by: