The daily exchange rate for currencies fluctuates on a daily basis due to many economic conditions affecting

Question:

The daily exchange rate for currencies fluctuates on a daily basis due to many economic conditions affecting the business cycle. The exchange rate for a twelve month period in the year 2004 between the US dollar and the Euro (EUR) shows an approximately normally distributed behavior with a mean exchange rate of 0.804 euros for every dollar and a standard deviation of0.0255.

Find the following:

a. The probability that the exchange rate between the pair of currencies between 0.798 and 0.8100.

b. The probability that the exchange rate will be larger than 0.845 euros for every dollar.

c. The exchange rate such that 98% of the data falls below it.

d. If the standard deviation is changed from the stated value to 0.03, what will the answers in (a) through (c) be?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question
Question Posted: