Question 1 This information applies to questions 1 and 2: It is now the end of Q4-20X0. Twenty Four erstwhile equity analysts have estimated the closing price of the SSPT ETF at the end of Q1-20X1. The average of the estimates (Xbar) is 117.6 and the standard deviation (S) is 14.6. Assume that the distribution of SSPT's Q1-20X1 closing price may be approximately modeled with the Normal density function. 1. Using this model, which is closest to your estimation of the probability that SSPT's Q1-20X1 closing price will be between 77.9 and 98.3? Hint: Use an online 'Normal Distribution Calculator' like this one, found via Google search: https://www.hackmath.net/en/calculator/normal-distribution D) 11.0% C) 9.0% E) The probability cannot be reasonably estimated with the given information. B) 0.0% A) 7.0% 1 pts Question 2 2. Using the above model, which is closest to your estimation of the probability that SSPT's Q1-20X1 closing price will be below 100? Hint: Use an online 'Normal Distribution Calculator' like this one, found via Google search: https://www.hackmath.net/en/calculator/normal-distribution O C) 11.4% D) 8.7% E) The probability cannot be reasonably estimated with the given information. B) 10.0% O A) 17.4% 1 pts Question 3 This information applies to problems 3 through 5: Mr. Canttakeitanymore has quit his job and decided to support himself by playing the slot machine at a local arcade. Each pull on this machine costs $2.50. A win on any give pull provides a payout of $20. Mr C has carefully (and correctly) estimated that wins occur about 10% of the time on this machine. 1 pts 3. What is the average payout on this machine? "Payout" includes just what the machine pays. It does not include the cost of each pull. A) $5.00 E) This can't be computed from the given information. D) $20.00 O B) $10.00 C) $2.00 Question 4 4. What is the long-term average profit-per-pull for this machine? D) $0.50 E) $5.00 O A) -$5.00 B) -$0.50 O C) $0.00 1 pts Question 5 5. What is the best probability distribution to model this machine's functioning? OE) Log Normal O A) Normal F) Monte Carlo D) Poisson OC) Bernoulli O B) Binomial 1 pts Consider this normal distribution graph and the information below for the next two questions. (Hint: These questions illustrate how you might see numerical Normal Distribution questions on an exam). u = average. sigma standard deviation. Percents are probabilities of being within the indicated segments of the X axis. For example, there is a 34.13% probability of being between u and u + sigma 0.13% 2.14% 13.59% 34.13% 34.13% 13.59% 2.14% 0.13% - 4 30 - 20 - + +20 + 30 +40 You have analyzed 30 years of historical, annual returns of the iShares Nasdaq Biotechnology ETF (ticker IBB). You found the average return = 15% and the standard deviation of returns = 20%. Based on this analysis, you plan to model future IBB returns (for better or worse) as normally distributed, with mu (average) = 15% and sigma (standard deviation) = 20%. Question 6 1 pts What is the probability that, in any given future year, IBB will lose 25% or more of its value? Round your answer to three decimal places. Question 7 What is closest to the probability that, in any given future year, IBB's return will be 35%? 1 pts