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A company believes that the rate of return (X) is normally distributed with a mean of 40% and a standard deviation of 10%. a. Find the probability that the return X will exceed 55%. b. The bank who will fund the project, however, believes that the distribution of returns is V = 0.8X - 5%. Find the probability that V will exceed 55%. (hill P.6)

A company believes that the rate of return (X) is normally distributed with a mean of 40% and a standard deviation of 10%. a. Find the probability that the return X will exceed 55%. b. The bank who will fund the project, however, believes that the distribution of returns is V = 0.8X - 5%. Find the probability that V will exceed 55%. (hill P.6)

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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2. A company believes that the rate of return (X) is normally distributed with a mean of 40% and a standard deviation of 10%. a. Find the probability that the return X will exceed 55%. b. The bank who will fund the project, however, believes that the distribution of returns is V = 0.8X - 5%. Find the probability that V will exceed 55%. (hill P.6)
Transcribed Image Text:2. A company believes that the rate of return (X) is normally distributed with a mean of 40% and a standard deviation of 10%. a. Find the probability that the return X will exceed 55%. b. The bank who will fund the project, however, believes that the distribution of returns is V = 0.8X - 5%. Find the probability that V will exceed 55%. (hill P.6)
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