In Melanie's Styling Salon, the Time to Complete a Simple

question 38

Multiple Choice

In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a mean of 25 minutes and a standard deviation of 4 minutes. What percentage of customers require less than 32 minutes for a simple haircut?

• A)95.99 percent
• B)99.45 percent
• C)97.72 percent
• D)45.99 percent Using Excel =NORMDIST(32,25,4,1) = 0.9599, or use z = (32 - 25)/4 = 1.75 with AppendixC.

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Definitions:

Inventory

The total amount of goods and materials held by a business for the purpose of resale, manufacturing, or repair.

Purchases Discount

A reduction in the price of goods that a buyer can avail of for making early payments to the supplier.

Yearly Savings Rate

The percentage of an individual's or household's income that is saved rather than spent over the course of a year.

FOB Shipping Point

A term in shipping contracts that specifies that the buyer is responsible for the cost and risk of transporting goods from the point of origin as soon as they are loaded onto the transport vehicle.