Marty Byrde launders money in the Ozarks through a casino. He averages $100,000 per day in profits with a standard deviation of $30,000. He wants to avoid detection by the FBI so he doesn't go to jail. The FBI will only get involved if his average profits for a four day period hit a z-score of 2.33. If you are helping Marty, what would the maximum amount of money you would advise Marty profit, on average, over the four days? In other words, what average of profits would equal a z-score of 2.33? (hint: notice this is now a sample of four days instead of just one) A)34950 B)116500 C)134950 D)146500
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Marty Byrde launders money in the Ozarks through a casino. He averages $100,000 per day in profits with a standard deviation of $30,000. He wants to avoid detection by the FBI so he doesn't go to jail. The FBI will only get involved if his average profits for a four day period hit a z-score of 2.33. If you are helping Marty, what would the maximum amount of money you would advise Marty profit, on average, over the four days? In other words, what average of profits would equal a z-score of 2.33? (hint: notice this is now a sample of four days instead of just one)
A)34950
B)116500
C)134950
D)146500
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
