A simulation model similar to the one described in this chapter has been constructed by the Great

Question:

A simulation model similar to the one described in this chapter has been constructed by the Great Basin to evaluate the largest of its new investment proposals. After many iterations of the model, Great Basin’s management has arrived at an expected for Project A of $1.0 million. The standard deviation of the has been estimated from the simulation model results to be $0.8 million.
a. What is the probability that the project will have a negative ?
b. What is the probability that the project will have a greater than $2.2 million?

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