# Question: A consensus forecast is the average of a large number

A consensus forecast is the average of a large number of individual analysts’ forecasts. Suppose the individual forecasts for a particular interest rate are normally distributed with a mean of 5.0 percent and a standard deviation of 1.2 percent. A single analyst is randomly selected. Find the probability that his/ her forecast is:

a. At least 3.5 percent.

b. At most 6 percent.

c. Between 3.5 percent and 6 percent.

a. At least 3.5 percent.

b. At most 6 percent.

c. Between 3.5 percent and 6 percent.

## Relevant Questions

Recall from Exercise 6.63 that individual forecasts of a particular interest rate are normally distributed with a mean of 5 percent and a standard deviation of 1.2 percent. a. What percentage of individual forecasts are at ...For each investment class in Table 3.9 (page 139), assume that future returns are normally distributed with the population mean and standard deviation given in Table 3.9. Based on this assumption: a. For each investment ...Assume that the waiting time x for an elevator is uniformly distributed between zero and six minutes. a. Write the formula for the probability curve of x. b. Graph the probability curve of x. c. Find P(2 ≤ x ≤ 4). d. ...Recall that the trash bag manufacturer has concluded that its new 30- gallon bag will be the strongest such bag on the market if its mean breaking strength is at least 50 pounds. In order to provide statistical evidence that ...Find the mean of each sample in ExercisePost your question