An investment firm offers its customers municipal bonds that mature after varying numbers of years. The cumulative probability distribution function of the number of years to maturity for a randomly selected bond is F(t) = 0 1/4 1/2 3/4 1 if t < 1,0 if 1 ≤t <3, if 3 < t < 5, if 5

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Find (fraction - lowest form):

a. P (T = 5)
b. P (T ≤ 5 | T ≥ 2)

Note: Do not round off or round up in between calculations.

An investment firm offers its customers municipal
bonds that mature after varying numbers of years.
The cumulative probability distribution function
of the number of years to maturity for a randomly
selected bond is
F(t)
0
1/4
1/2
3/4
1
if t < 1,0
if 1 ≤t <3,
if 3 < t < 5,
if 5 < t <7,
if t ≥ 7.
Transcribed Image Text:An investment firm offers its customers municipal bonds that mature after varying numbers of years. The cumulative probability distribution function of the number of years to maturity for a randomly selected bond is F(t) 0 1/4 1/2 3/4 1 if t < 1,0 if 1 ≤t <3, if 3 < t < 5, if 5 < t <7, if t ≥ 7.
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