Harada Construction has just bid on a major commercial project. The bid was based on a normal distribution representing Harada’s estimates of possible costs for the project. The distribution is centered on $6.5 million and has a standard deviation of $1.1 million.
a. How likely is it that project costs will be between $5 million and $6 million? b. How likely is it that projects costs will be no more than $7.2 million?
c. The company’s bid was $8.1 million. According to Harada’s estimates, how likely is it that project costs will exceed the bid amount?