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The time required for a hospital-based ambulance to arrive in Northern Heights, a district of Central City, follows a normal distribution, with a mean of 9.5 minutes and a standard deviation of 1.25 minutes.
a. The city Health Commissioner guarantees residents that an ambulance will never take longer than 10 minutes. If it does take longer, the hospital if liable to receive a financial penalty. What percent of ambulance call outs that incur a financial penalty for the hospital?
b. After some push back from local hospitals, the Health Commissioner decides that she does not want to have to penalize more than 5% of ambulance call outs, how long should she make the new guaranteed time limit?
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