Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When returns from a project can be assumed to be normally distributed, such as those shown in Figure 136 (represented by a symmetrical, bell-shaped curve),

image text in transcribed When returns from a project can be assumed to be normally distributed, such as those shown in Figure 136 (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 will fall within one standard deviation of the expected value ( D 10). Similarly, 95.44 percent will fall within two standard deviations ( D2 ), and so on. An abbreviated table of areas under the normal curve is shown next. Assume Project A has an expected value of $35,000 and a standard deviation () of $7,000. o. What is the probability that the outcome will be between $31,500 and $38,500 ? Note: Do not round Intermedlate colculetlons. Round your answer to 4 declmal pleces. b. What is the probability that the outcome will be between $28,000 and $42,000 ? Note: Do not round Intermedlete colculetlons. Round your answer to 4 declmal pleces. c. What is the probability that the outcome will be at least $18,000 ? Note: Do not round Intermedlate colculetlons. Round your answer to 4 declmal pleces. d. What is the probability that the outcome will be less than $43,020 ? Note: Do not round lntermedlete colculatlons. Round your answer to 4 declmal pleces. e. What is the probability that the outcome will be less than $28,000 or greater than $42,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical financial management

Authors: William r. Lasher

5th Edition

0324422636, 978-0324422634

More Books

Students also viewed these Finance questions

Question

Special officer for linguistic minorities.

Answered: 1 week ago