# Question

The daily exchange rate of one dollar in euros during the first three months of 2007 can be inferred to have the following distribution.
X P(x)
0.73 ... 0.05
0.74 ... 0.10
0.75 ... 0.25
0.76 ... 0.40
0.77 ... 0.15
0.78 ... 0.05
a. Show that P(x) is a probability distribution.
b. What is the probability that the exchange rate on a given day during this period will be at least 0.75?
c. What is the probability that the exchange rate on a given day during this period will be less than 0.77?
d. If daily exchange rates are independent of one another, what is the probability that for two days in a row the exchange rate will be above 0.75?

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