Question: I am considering two alternative investments. In both cases I am unsure about the percentage return but believe that my uncertainty can be represented by
I am considering two alternative investments. In both cases I am unsure about the percentage return but believe that my uncertainty can be represented by normal distributions with the means and standard deviations shown in the accompanying table. I want to make the investment that is more likely to produce a return of at least 10%. Which investment should I choose?
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Mean 10.4 11.0 Standard Deviation 1.2 4.0 Investment A Investment B
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