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The company with 79 units in stock have a Service Level of 97
The z score is used to determine by how many standard deviations the raw score is above or below the mean. The z score is given by:
[tex]z=\frac{x-\mu}{\sigma} ;\\\\where\ x=raw\ score, \mu=mean,\sigma=standard\ deviation[/tex]
Given that: μ = 40, σ = 20, hence for x = 79:
[tex]z=\frac{79-40}{20} =1.95[/tex]
From the normal distribution table, P(z < 79) = P(z < 1.95) = 97.44%
Hence the company with 79 units in stock have a Service Level of 97
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