Peter has $30,000 to invest in a mutual fund whose annual returns are normally distributed with a

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Peter has $30,000 to invest in a mutual fund whose annual returns are normally distributed with a mean of 5% and standard deviation of 4.2%.

a. Use Analysis ToolPak or R, both with a seed of 1, to simulate 5,000 trials to estimate the mean balance after one year.

b. What is the probability of a balance of $32,000 or more?

c. Compare your results to another investment option at a fixed annual return of 3% per year.

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Business Analytics Communicating With Numbers

ISBN: 9781260785005

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Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen

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Question Posted: Feb 16, 2023 08:22 AM

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Peter has $30,000 to invest in a mutual fund whose annual returns are normally distributed with a

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Using Excel a Average balance after one year 315152316 b Probability of the balance of 32000 or more ...View the full answer

Business Analytics Communicating With Numbers

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