4. Continuous Distributions

Normal Applications — Quiz

Test your understanding of normal applications with 5 practice questions.

Practice Questions

Question 1

Suppose daily demand $X\sim N(200,30^2)$ units. What is the probability of stockout if a retailer orders 250 units?

Question 2

A retailer wants only a 2% chance of stockout for daily demand $X\sim N(200,30^2)$. What reorder level $L$ should they use?

Question 3

For a sample of size $n=64$ drawn from $N(200,30^2)$, what is $P(\bar X>210)$?

Question 4

How large must $n$ be so that a 95\\% confidence interval for a mean with known $\sigma=30$ has margin of error at most 5?

Question 5

A fair coin is flipped 200 times. Using normal approximation with continuity correction, what is $P(90\le X\le110)$ heads?