xIntroduction

A local commercial real estate business, Keystone Properties, has hired you as a quantitative analyst.The owners are concerned that their traditional way of making decisions (experience and gut feel, generally) is not allowing them to maximize the business's potential.They have hired you to help them make a variety of sound decisions based on a scientific approach.

The company has provided you with as much information as they have, and it is up to you to determine the best quantitative approach to answering their questions.The company has also made it clear that it is crucial that you explain analysis and calculations in such a way that a group of people unfamiliar with quantitative analysis can understand what you are doing and feel comfortable with the results.If you just provide a numerical answer to their questions, while still helpful, this will not meet their expectations for the project.

Deliverable

Keystone has requested that you answer their questions in the form of a business report in MS Word format.Simply typing in answers to their questions below will be construed as a lack of professionalism. The writing must be free of errors and easy to understand for someone unfamiliar with quantitative analysis. The exact design of the report is up to you, as Keystone does not really care about the aesthetics as long as you answer all of their questions in an organized and coherent report.Keystone specifically requests that you include any equations and calculations that you had done to be completely transparent.Any graphs or diagrams can be included in the body of the report or in an appendix as you see fit.

Keystone is curious how likely they are to reach their annual revenue target.Past experience suggests that annual revenue follows a typical bell-shaped distribution, with a mean of $35 million and a standard deviation of $5 million.Keystone has set a revenue goal of $39 million for this year. How likely are they to reach the target based on the historical data?In order to remain in good standing with investors, Keystone needs to make at least $30 million.What are the chances they fail fall into poor standing with their investors?