Dallas Green Homes Uses a Normal Curve to Estimate Next

question 93

Multiple Choice

Dallas Green Homes uses a normal curve to estimate next year's demand.The distribution has a mean of 163 units and a standard deviation of 36 units.According to this demand distribution.If demand exceeds 95 units, the company will have to expand.How likely is it that expansion will be necessary?

• A).9429
• B).9706
• C).9131
• D).9878
• E).8980

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Definitions:

Compounding Effect

The method by which an investment's worth grows over time as the returns it generates, including both capital gains and interest, themselves accumulate interest.

Present Value

Present value is the today's worth of an anticipated future amount of money or cash flows, factoring in a specified rate of return.

Discount

A reduction applied to the price of goods, services, or securities.

Future Value

The value of an asset or an amount of money at a specific point in the future, taking into account interest or capital gains.