Questions a & b

Financial analysts who make forecasts of stock prices are categorized as either "buy-side" analysts or "sell-side" analysts. The mean and standard deviation of the forecast errors for both types of analysts are shown in the table to the right. Assume that the distribution of forecast errors are approximately normally distributed. Buy-Side Sell-Side Analysts Analysts Mean 0.88 - 0.08 Standard Deviation 1.93 0.84 a. Find the probability that a buy-side analyst has a forecast error of +2.01 or higher. b. Find the probability that a sell-side analyst has a forecast error of +2.01 or higher. Click here to view a table of areas under the standardized normal curve. . . . . . a. The probability that a buy-side analyst has a forecast error of +2.01 or higher is (Round to three decimal places as needed.)