The average stock price for companies making up the S&P 500 is $30, and the standard deviation is $18.20 (Business Week, Special Annual Issue, Spring 2003). Assume the stock prices are normally distributed. (a) What is the probability that a stock price of a company will be more than $40 (to 4 decimals)? (b) What is the probability that a stock price of a company will be lest than $20 (to 4 decimals)?
The average stock price for companies making up the S&P 500 is $30, and the standard deviation is $18.20 (Business Week, Special Annual Issue, Spring 2003). Assume the stock prices are normally distributed. (a) What is the probability that a stock price of a company will be more than $40 (to 4 decimals)? (b) What is the probability that a stock price of a company will be lest than $20 (to 4 decimals)?
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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![The average stock price for companies making up the S&P 500 is $30, and the
standard deviation is $18.20 (Business Week, Special Annual Issue, Spring 2003). Assume
the stock prices are normally distributed.
(a) What is the probability that a stock price of a company will be more than $40 (to 4
decimals)?
(b) What is the probability that a stock price of a company will be lest than $20 (to 4
decimals)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79a668cc-8f1a-4f31-99fc-c88f8c643a3a%2Fc4e7bb73-f669-4c8f-a5d8-ba83ad69cc75%2Flmpv8rm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The average stock price for companies making up the S&P 500 is $30, and the
standard deviation is $18.20 (Business Week, Special Annual Issue, Spring 2003). Assume
the stock prices are normally distributed.
(a) What is the probability that a stock price of a company will be more than $40 (to 4
decimals)?
(b) What is the probability that a stock price of a company will be lest than $20 (to 4
decimals)?
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