A paint manufacturer has a normal distributionof 100,000 gallons per day of production with a standard deviationof 10,000 gallons. Management wants to create an incentive bonus when production exceeds the 90th percentileof the distribution. At what level should management pay the incentive bonus?
M = 100000, s = 10000
Let the required production level have a normal score of z.
The expert examines standard deviation and normal distributions. Neat, step-by-step solution is provided.