Standard Normal

question 39

Essay

Standard Normal. University Savings, Inc offers personal checking accounts to commercial and individual customers. Although unit costs cannot be determined precisely, University anticipates that monthly costs will be normally distributed around a mean of $5 per unit with a standard deviation of $1 per unit.
A. What is the probability that University would make a profit at a checking price of $5 per unit?
B. Calculate the unit price necessary to give University a 90% chance of making a profit on an individual checking account.
C. If University offers its accounts at a price of $6, what is the probability that it will make a profit?

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Definitions:

Hypertonic

Referring to a solution that has a higher concentration of solutes than another solution, leading to osmosis.

Metabolic Alkalosis

A condition characterized by an increase in the body's pH level due to an excess of bicarbonate in the blood.

Arterial Blood

Blood that is oxygen-rich, having been oxygenated in the lungs and pumped by the heart through the arteries to the body.

Vomiting

The forceful expulsion of stomach contents through the mouth.