According to global analyst Olivier Lemaigre, the average price-to-earnings ratio for companies in emerging markets is 12.5.

Question:

According to global analyst Olivier Lemaigre, the average price-to-earnings ratio for companies in emerging markets is 12.5. Assume a normal distribution and a standard deviation of 2.5. If a company in emerging markets is randomly selected, what is the probability that its price-per-earnings ratio is above 17.5, which, according to Lemaigre, is the average for companies in the developed world?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...