Question
You work for the WHO in Geneva and are on the plane on your way to Petite-Nation, a village between Ottawa and Montreal. During the
You work for the WHO in Geneva and are on the plane on your way to Petite-Nation, a village between Ottawa and Montreal. During the Geneva-Montreal flight, you estimated that your expenses for the duration of your stay in Petite-Nation would follow a normal law with an average of 500 Swiss francs (CHF) and a standard deviation of 100 CHF. You also noticed that you had 700 CHF with you. Upon your arrival at the Montreal airport, at the cash purchase and exchange counter, we sell at the rate of 2 Canadian dollars (CDN) for 1 CHF and we buy at the rate of 2.5 CDN for 1 CHF . In addition, we informed you before your flight that, in Petite-Nation, businesses do not accept cards and you can only pay in CDN. However, foreign cash can be exchanged there. In particular, 1 CHF will get you 1.67 CDN. [3 points] Use the camelot model to determine the amount (in CHF) you should convert to CDN at the airport. [1 point] If you converted the entire 700 CHF to CDN at the airport ($1,400), how likely would it be that you would use it up before the end of your stay? Round to 4 decimal places.
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