Question: When returns from a project can be assumed to be normally distributed represented by a symmetrical, bell-shaped curvel, the areas under the curve can be
When returns from a project can be assumed to be normally distributed represented by a symmetrical, bell-shaped curvel, the areas under the curve can be determined from statistical tables based on standard deviations. For example, 6826 percent of the distribution will fall within one standard deviation of the expected value (D + 10). Similarly, 95.44 percent will fall within two standard deviations (D 20), and so on. An abbreviated table of areas under the normal curve is shown here. (Round the final answers to 2 decimal places Expected Value .RO 0.6826 0.1413 0.3749 0.4332 0.4989 1.se 0.8664 Assume Project A has an expected value of $26,000 and a standard deviation () of $5,200 a. What is the probability the outcome will be between $23,400 and $28,600? Probability 38,30 % b. What is the probability the outcome will be between $18.200 and $33,800? Probability 8664% c. What is the probability the outcome will be greater than $20,000? Probability 8749 % d. What is the probability the outcome will be less than $41.410? Probability 9989 e. What is the probability the outcome will be less than $20,800 or greater than $28,600? Probability ( %
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