Question

Last year, the revenue for financial services companles had a mean of 70 million dollars with a standard deviation of 14 million. Find the percentage of companies with revenue less than 74 million dollars. Assume that the distribution is normal. Round your answer to the nearest hundredth.

Answer 1

To find the percentage of companies with revenue less than 74 million dollars, we can use the z-score formula:

z = (X - μ) / σ

Where:

X = 74 million dollars

μ = 70 million dollars (mean)

σ = 14 million dollars (standard deviation)

z = (74 - 70) / 14

z = 4 / 14

z = 0.29

Using a standard normal distribution table or calculator, we can find the percentage of companies with revenue less than 74 million dollars corresponding to a z-score of 0.29. The percentage is approximately 61.43%.

So, approximately 61.43% of companies had a revenue less than 74 million dollars.

Explanation: