Question

The profit (or loss) from an investment is normally distributed with a mean of $11,200 and a standard deviation of $8,250.
a. What is the probability that there will be a loss rather than a profit?
b. What is the probability that the profit will be between $10,000 and $20,000?
c. Find x such that the probability that the profit will exceed x is 25%.
d. If the loss exceeds $10,000 the company will have to borrow additional cash. What is the probability that the company will have to borrow additional cash?
e. Calculate the value at risk.


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  • CreatedJune 03, 2015
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