Suppose that the daily demand for regular gasoline at a gas station is normally distributed with...

Suppose that the daily demand for regular gasoline at a gas station is normally distributed with a mean of 1,000 gallons and a standard deviation of 100 gallons. The next delivery of gasoline is scheduled later today at the close of business. What is the minimum amount of regular gasoline that the station must have in storage so that there is a 90% chance it will have enough to satisfy today’s demand?

Select one:

a. 836

b. 872

c. 1,128

d. 1,165

Solutions

Expert Solution

Here, we have find the value of X for which we have

P(X>=a)=0.90

i.e. P(X<a)= 0.10

Our random variable X is

The detailed procedure to answer the given question is as given in the image below:-

Hence, Option b. 872 is the correct alternative.

This answers your question.

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orchestra answered 1 year ago

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