1. Excel's function NORM.DIST can be used to compute probabilities for the normal distribution. (true or false.)

a) The waiting time at an elevator is uniformly distributed between 60 and 180 seconds. Find the mean and standard deviation of the waiting time.

Group of answer choices

• 2 minutes and 1200 seconds
• 115 seconds and 24.083 (second)²
• 2 minutes and 20 (minute)²
• 115 seconds and 49.07 seconds
• 120 seconds and 34.64 seconds

b) A hedge fund returns on average 30% per year with a standard deviation of 15%. Using the empirical rule, approximate the probability the fund returns over 45% next year.

choices: 5%; 10%; 68%; 20%; 32%; 16%

c) The salary of teachers in a particular school district is normally distributed with a mean of $50,000 and a standard deviation of $2,500. Due to budget limitations, it has been decided that the teachers who are in the top 5% of the salaries would not get a raise. What is the salary level that divides the teachers into one group that gets a raise and one that doesn't?

choices

1.96

53204

55816

54112

-1.96

54900

d) The stock price of a particular asset has a mean and standard deviation of $58.50 and $8.25, respectively. Use the normal distribution to compute the 80th percentile of this stock price.

Choices:

69.07

1.96

72.07

65.44

77.69

1.645