Question
4) An analyst has been following the performance of IBM, in the tech sector, and Pfizer, in the pharma sector. She makes a presentation to
4) An analyst has been following the performance of IBM, in the tech sector, and Pfizer, in the pharma sector. She makes a presentation to you about her research, during which she states that the 3rdquarter revenue of IBM was 4.2 billion $ and the 3rdquarter revenue of Pfizer was 13.3 billion $. Furthermore, she states that the IBM revenue is 1.2 standard deviations above the mean of the 3rdquarter revenues of companies in the tech sector and that the 3rdquarter revenue of Pfizer is 1.8 standard deviations above the mean of the 3rdquarter revenues of companies in the pharma sector.
a) Assuming that the 3rdquarter revenue of tech companies follows a normal distribution, what fraction of tech companies had 3rdquarter revenue less than that of IBM? b) Assuming that the 3rdquarter revenue of pharma companies follows a normal distribution, what fraction of pharma companies had 3rdquarter revenue less than that of Pfizer?
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