Normal Distribution Apllication

Author: Client Uploads

March 16th, 2021

Normal distributions can be used for many purposes. One purpose might be to determine warranty times on a new game system. Consider if game systems normally last for 36 months before a failure of some sort with a standard deviation of 5 months. If we wanted to have a warranty that paid off on only 5% of the machines (in other words where 95% of them will work) then we could use: =NORMINV(0.95,36,5) which would give 44.22 months. This means that we should set our warranty period at 44 months to make sure that we only have to pay off on 5% of the machines. We obviously want to keep our customers happy and fix their system if it fails after a few months. Come up with at least TWO examples for normal distributions (similar to the above) with numbers and the formula (Google Sheets or Excel) that you used.

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