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A construction company has taken up a project to build a high-rise office complex. The time required to complete a construction project is normally distributed with a mean of 80 weeks and a standard deviation of 10 weeks. A construction company must pay a penalty if the project is not finished by the due date in the contract.
(a) If a construction company bidding on this contract puts in a due date of 80 weeks, what is the probability that they will have to pay a penalty?
(b) If a construction company bidding on this contract wishes to be 90% sure of finishing by the due date, what due date (project week #) should be negotiated?
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