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The profit (or loss) from an investment is normally distributed with a mean of $11,200 and a standard deviation of

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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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a P X 0 0 0873 b P 10000 X 20000 0 4148 c P X …View the full answer


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Complete Business Statistics

Complete Business Statistics

ISBN: 9780077239695

7th Edition

Authors: Amir Aczel, Jayavel Sounderpandian

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Question Posted: June 03, 2015 05:51:21
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