Exercising Owners of an Exercise Gym Believe That a Normal

question 29

Essay

Exercising Owners of an exercise gym believe that a Normal model is useful in projecting
the number of clients who will exercise in their gym each week. They use a mean of 800
clients and a standard deviation of 90 clients.
a. Draw and clearly label this model.
b. What is the first quartile of the weekly number of clients? [Show work]
c. An owner of another gym reports that 5% of the time their gym has fewer than 450
clients, and 40% of the time the gym has more than 1085 clients. What parameters should
that owner use for his Normal model?

---

Definitions:

Capital Budgeting

The process a business undergoes to evaluate potential major investments or expenses.

New Business Ventures

Initiatives or projects that involve starting a new business or expanding into new markets or products.

Equipment Replacement

The process of substituting old, worn-out, or obsolete equipment with newer, more efficient models or versions.

Discount Rate

A rate used to convert future cash flows into their present value, fundamental in the assessment of investment attractiveness.