Your company is considering submitting a bid on a major project.You determine that the expected completion time is 100 weeks and the standard deviation is 10 weeks.It is assumed that the normal distribution applies.You wish to set the due date for the project such that there is an 85 percent chance that the project will be finished by this time.What due date should be set?
A)108.0
B)110.4
C)89.6
D)85.0

Question

Quizplus · Accepted Answer

We need to find the z-score corresponding to an 85% probability of completing the project on time, which is 1.44 (using a standard normal distribution table). 
Then we can use the formula: 
due date = expected completion time + (z-score * standard deviation)
due date = 100 + (1.44 * 10) 
due date = 110.4 weeks 
Therefore, the due date that should be set is 110.4 weeks (choice B).

Your Company Is Considering Submitting a Bid on a Major