Lopez Sales Company had the following balances in its accounts on January 1, 2018: Cash$68,000 Merchandise Inventory 48,000 Land
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Answer:
So the value that separates the bottom 25% of data from the top 75% is -0.00235.
Explanation:
Previous concepts
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".
Solution to the problem
Let X the random variable that represent the variable of interest of a population, and for this case we know the distribution for X is given by:
Where and
For this part we want to find a value a, such that we satisfy this condition:
(a)
(b)
Both conditions are equivalent on this case. We can use the z score again in order to find the value a.
As we can see on the figure attached the z value that satisfy the condition with 0.25 of the area on the left and 0.75 of the area on the right it's z=-0.674. On this case P(Z<-0.674)=0.25 and P(z>-0.674)=0.75
If we use condition (b) from previous we have this:
But we know which value of z satisfy the previous equation so then we can do this:
And if we solve for a we got
So the value that separates the bottom 25% of data from the top 75% is -0.00235.