A British retailer that specialises in food and clothing announced an end of year revenue of...

 

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A British retailer that specialises in food and clothing announced an end of year revenue of 10billion. The actual revenue is in line with the expected annual revenue. The standard deviation over recent 10 years is 0.38billion. If its revenue follows a normal distribution, calculate the percentage chance that the yearly revenue will be as follows: (i) The retailer's revenue greater than 10.8billion (6 marks) (ii) The company makes a revenue less than 10.5 billion (6 marks) (iii) A forecaster prediction that the revenue will be between 9.8 billion and 10.2 billion (10 marks) b) Briefly explain a standard normal distribution and how it was applied in (a) above. (6 marks) c) Estimate the Expected Net Profit of the British retailer given an analyst's predictions that are presented below: Good Year Moderate Year Bad Year E D MANAN www www.w Probability 0.4 0.25 0.35 Estimated Net Profit (Emillion) 400 70 -100 (5.3 marks) A British retailer that specialises in food and clothing announced an end of year revenue of 10billion. The actual revenue is in line with the expected annual revenue. The standard deviation over recent 10 years is 0.38billion. If its revenue follows a normal distribution, calculate the percentage chance that the yearly revenue will be as follows: (i) The retailer's revenue greater than 10.8billion (6 marks) (ii) The company makes a revenue less than 10.5 billion (6 marks) (iii) A forecaster prediction that the revenue will be between 9.8 billion and 10.2 billion (10 marks) b) Briefly explain a standard normal distribution and how it was applied in (a) above. (6 marks) c) Estimate the Expected Net Profit of the British retailer given an analyst's predictions that are presented below: Good Year Moderate Year Bad Year E D MANAN www www.w Probability 0.4 0.25 0.35 Estimated Net Profit (Emillion) 400 70 -100 (5.3 marks)

Answer rating: 100% (QA)

To calculate the probabilities in the scenarios given well use the concept of the standard normal distribution and zscores The standard normal distribution ... View the full answer