Fitbit makes health and fitness tracking devices. some buyers want very basic fitness tracking such as steps taken and calories consumed. others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. in serving these two very different groups, fitbit is using segmentation.

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?