Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The daily exchange rates for the five-year period 2003 to 2008 between currency A and currency B are well modeled by a normal distribution with
The daily exchange rates for the five-year period 2003 to 2008 between currency A and currency B are well modeled by a normal distribution with mean 1.748 in currency A (to currency B) and standard deviation 0.013 in currency A. Given this model, and using the 68-95-99.7 rule to approximate the probabilities rather than using technology to find the values more precisely, complete parts (a) through (d). OD a) What would the cutoff rate be that would separate the lowest 0.15% of currency A/currency B rates? The cutoff rate would be 1.709 (Type an integer or a decimal rounded to the nearest thousandth as needed.) b) What would the cutoff rate be that would separate the highest 50%? The cutoff rate would be 1.748 (Type an integer or a decimal rounded to the nearest thousandth as needed.) c) What would the cutoff rates be that would separate the middle 95%? The lower cutoff rate would be 1.722 . (Type an integer or a decimal rounded to the nearest thousandth as needed.) The upper cutoff rate would be 1.774. (Type an integer or a decimal rounded to the nearest thousandth as needed.) d) What would the cutoff rate be that would separate the lowest 2.5%? The cutoff rate would be. (Type an integer or a decimal rounded to the nearest thousandth as needed.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started