The time required to complete a project is normally distributed with a mean of 80 weeks and a standard deviation of 10 weeks.The construction company must pay a penalty if the project is not finished by the due date in the contract.If a construction company bidding on this contract puts in a due date of 80 weeks,what is the probability that they will have to pay a penalty?
A)0
B)1.000
C)0.500
D)1/8
E)None of the above

Question

Quizplus · Accepted Answer

Since the due date in the contract is equal to the mean of the distribution, the probability of completing the project after 80 weeks is the probability of getting a value from the distribution that is greater than 80 weeks. Using a standard normal distribution table or calculator, we can find that the probability of getting a value greater than 80 weeks is 0.5 or 50%. Therefore, there is a 50% chance that the construction company will have to pay a penalty.

The Time Required to Complete a Project Is Normally Distributed