Harada Construction has just bid on a major commercial project. The bid was based on a normal

Question:

Harada Construction has just bid on a major commercial project. The bid was based on a normal distribution representing Harada’s estimates of possible costs for the project. The distribution is centered on $6.5 million and has a standard deviation of $1.1 million.

a. How likely is it that project costs will be between $5 million and $6 million?

b. How likely is it that projects costs will be no more than $7.2 million?

c. The company’s bid was $8.1 million. According to Harada’s estimates, how likely is it that project costs will exceed the bid amount?

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...