A Producer Has a History of Making Bad Movies

question 72

Short Answer

A producer has a history of making bad movies. The movies he has produced have averaged $160,000 dollars at the box office with a standard deviation of $185,000. He thinks his latest movie will be a huge hit. How much will the movie earn at the box office if it is only expected to earn that much or more 0.5% of the time? (Assume that the profit at the box office is normally distributed.)

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Definitions:

Manufacturing Sector

The segment of the economy dedicated to the production of goods through the processing of raw materials and assembly of components.

Increased Efficiency

The improvement of a system or process's ability to produce a desired output with a minimum amount of input, effort, or expense.

Specialization

The process of focusing on a narrow area of expertise or activity to increase efficiency and productivity.

Product-Oriented Production

A production strategy that focuses on producing goods in large volumes with minimal variation, typically associated with mass production environments.