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probability analysis Problem 13.20 (Algo) Probability analysis with a normal curve distribution [LO13-4] When returns from a project can be assumed to be normally distributed,
probability analysis
Problem 13.20 (Algo) Probability analysis with a normal curve distribution [LO13-4] When returns from a project can be assumed to be normally distributed, such as those shown in figure 13-6 (represented by a symmetrical, bell-shaped curve), the areas under the curve can be determined from statistical tables based on standard deviations. For example 68.26 percent of the distribution witl falt within one standard devation of the expected value (D=10).5 imilarly. 95.44 percent will fall within two standard devations (D20 ), and so on. An abbrevated table of areas under the normal curve is shown next Assume Project A has an expected value of $25,000 and a standard deviation (0) of $5,000. Q. What is the probability thot the outcome will be between $22,500 and $27,500 ? Note: Do not round intermediate calculations. Round your onswer to 4 decimal places. b. What is the probability that the outcome will be between $20,000 and $30,000 ? Note: Do not round intermediate calculations. Round your answer to 4 decimal places. c. What is the probability that the outcome will be at least $19.000 ? Note: Do not round intermediote calculotions. Round your answer to 4 decimal places. d. What is the probability that the outcome will be less than $34,480 ? Note: Do not round intermediate colculations. Round your answer to 4 decimal places Step by Step Solution
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