BUSINESS STATISTICS -- II

Problems on Normal Distribution

1. Find the area to the right of Z = 0.21.

2. Find the area to the left of Z = 1.84.

3. For a certain normal variate X, the mean is 12 and the standard deviation is 4. Find (I)
P ( X >= 20) (ii) P ( X <= 12). (Given : area under the standard normal curve from Z = 0
to Z = 2 is 0.4772).

4. The mean of a Normal Distribution is 50 and 5 % of the values are greater tan 60.
Find the standard deviation of this distribution.

5. A normal distribution has 77 as mean. Find its standard deviation, if 20 % of the area
under the curve lies to the right of 90.

6. For a normal distribution with mean 50 and Standard Deviation is 15, find Q1 and
Q3.

7. The mean and standard deviation of a normal distribution are 60 and 5 respectively.
Find the inter quartile range.

8. Suppose that sizes of hats are approximately normally distributed with mean of 18.5 cm
and a standard deviation of 2.5 cms. How many hats in a total of 2,000 will have sizes
(I) between 18 cms and 20 cms. (ii) more than 20 cms. Area between t = 0 and t
= 0.6 is 0.2257 and area between t = 0 and t = 0.2 is 0.0793, where t is the
standard normal variate.

9. The mean weight of 500 male students at a certain college is 65.5 Kgs and the
standard deviation is 10 Kgs. Assuming the weights are normally distributed, find how
many students weigh (I) more than 75.5 Kgs (ii) between 55.5 and 75.5 Kg.

10. Of a large group of men 5 % are under 60 inches in height and 40 % between 60
and 65 inches. Assuming a normal distribution, find the mean height and standard
deviation.

11. In a normal distribution 30 % of the items are under 50 and 10 % are over 86. Find
the mean and standard deviation of the distribution.

12. The sizes of components produced by a machine are normally distributed. It is required
that the size should lie between 15.63 cms and 15.84 cms and it is found that
2.872 % of the production is rejected for being oversized and 1.072 % of the production
is rejected for being undersized. Find the mean and standard deviation of the distribution
of the component sizes.
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13. The mean and standard deviation of wages of 6,000 workers engaged in a factory are
Rs. 1,200 and Rs. 400 respectively. Assuming the distribution to be normally
distributed, estimate (I) percentage of workers getting wages above Rs. 1,600 (ii)
Number of workers getting wages between Rs. 600 and Rs. 900 and (iii) Number of
workers getting wages between Rs. 1,100 and Rs. 1,500.

14. Incomes of a group of 10,000 persons were found to be normally distributed with mean
Rs. 520 and standard deviation Rs. 60, find (I) the number of persons having income
between Rs. 400 and Rs. 550. (ii) the lowest income of the richest 500. For a
standard normal variate ‘t’, the area under the curve between t = 0 and t = 0.5 is
0.19146, area between t = 0 and t = 1.645 is 0.4500 and area between t = 0 and t
= 2 is 0.47725.

15. The incomes of a group of 10,000 persons were found to be normally distributed with
mean equal to Rs. 750 and S.D. = Rs. 50. What was the lowest income among the
richest 250 ?

16. The income of a group of 10,000 persons was found to be normally distributed with
mean Rs. 750 and standard deviation Rs. 50. Show that, of this group about 95 %
had income exceeding Rs. 668 and only 5 % had income exceeding Rs. 832. What
was the lowest income among the richest 100 ?

17. The incomes of a group of 5,000 persons were found to be normally distributed with
mean Rs. 900 a Standard Deviation Rs. 75. What was the highest income among the
poorest 200 ? (Given : Area under standard normal curve from Z = 0 to Z = 1.75 is
0.46 ).

18. The wage distribution of workers in a factory is normal with mean Rs. 400 and standard
deviation of Rs. 50. If the wages of 40 workers is less than Rs. 350, what is the total
number of workers in the factory ?

19. The marks of the students in a class are normally distributed with mean 70 and
standard deviation of 5. If the instructor decides to give ‘A’ grade to the top 15 %
students of the class, how many marks must the student get to be able to get ‘A’ grade
?

20. The mean mark on a final examination was 72 and the standard deviation was 9. The
top 10 % of the students are to receive ‘A’, what is the minimum mark a student must
get in order to receive an ‘A’.

21 A set of examination marks is approximately normally distributed with a mean of 75 and

22. The distribution of marks obtained by a group of students may be assumed to be normal
with mean 50 marks and standard deviation 15 marks. Estimate the proportion of
students with marks below 35, if 25 % of students secured more than ‘k’ marks,
ascertain ‘k’.

23. Find the mean and standard deviation of a normal distribution of marks in an examination
where 44 % of candidates obtained marks below 55 and 6 % got above 80 marks.

24. The arithmetic mean of purchases per day by a customer in a large store is Rs. 25 with
a standard deviation of Rs. 10. If on a particular day, 100 customers purchased for
Rs. 37.80 or more , estimate the total number of customers who purchased from the store
on that day. Given that the normal area between t = 0 and t = 1.28 is 0.4000 where t
is a standard normal variate.

25. The customer accounts at a certain departmental store have an average balance of Rs.
480 and standard deviation of Rs. 160. Assuming that the account balances are
normally distributed, (I) what proportion of accounts is over Rs. 600 ? (ii) what
proportion of accounts is between Rs. 400 and Rs. 600 ? (iii) what proportion of
accounts is between Rs. 240 and Rs. 360 ?

26. A project yields an average Cash Flow of Rs. 500 Lakhs with a standard deviation of
Rs. 60 Lakhs. Calculate the following probabilities : (I) Cash Flow will be more than
Rs. 560 Lakhs, (ii) Cash Flow will be less than Rs. 420 Lakhs, (iii) Cash Flow will lie
between Rs. 460 Lakhs and Rs. 540 Lakhs, (iv) Cash Flow will be more than Rs.
680 Lakhs.

27. The time taken to complete a job is distributed approximately normal with a mean of 1.8
hours and a standard deviation of 0.1 hour. If “Normal time work” finishes at 6.00
pm and a job is started at 4.00 pm, what is the probability that the job will need
overtime process ?

28. The average number of units produced by a manufacturing concern per day is 355 and
a standard deviation of 50. It makes a profit of Rs. 1.50 per unit. Determine the
percentage of days when its total profit per day is (I) between 457.50 and Rs. 645.
(ii) greater than Rs. 682.50 (Assume the distribution to be normal). The areas between z
= 0 and z = 1 is 0.34134, area between z = 0 and z = 1.5 is 0.43319 and area
between z = 0 and z = 2 is 0.47725 where z is a standard normal variate.