# The Manager of an Accounting Firm believes that total profit of the firm next year can…

The Manager of an Accounting Firm believes that total

profit of the firm next year can be modeled by using a normal distribution, with a

mean of $870,000 and a standard deviation of $150,000.

(a) What is the probability that the firmâ€™s

total profit will exceed $1,210,000?

(b) What is the probability that the firmâ€™s

profit will fall to within $270,000 of the expected

level of profit (ie. mean profit)?

(c) In order to cover fixed costs, the firmâ€™s

profit must exceed the break-even level of profit

of $950,000. What is the probability that profit

will exceed this break-even level?

(d) Determine the profit level that has only 8%

chance of being exceeded next year.

## Leave a Reply

Want to join the discussion?Feel free to contribute!