Explanation Approach: Assume a normal distribution has a mean of μ and a standard deviation of σ . We use the equation z = x − μ σ to convert a value x in the nonstandard distribution to a z -score. Given Information: The mean yearly return is 7.8% and the standard deviation is 1.3%. Calculation: Substitute μ = 7.8 % , σ = 1.3 % and x = 9 % in z = x − μ σ , z = 9 % − 7.8 % 1.3 % = 1.2 % 1.3 % ≈ 0.92 Therefore, the corresponding z -score is approximately 0.92. To find the area between z = 0 and to a z -score, use the data in the standard normal distribution table. Use the row for z = 0.9 and the column labelled 0.02 in the standard normal distribution table. The data from the standard normal distribution table required for this problem is given below: z value 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 To determine b) To find: The number of years required to earn less than 6% on the investment.

6th Edition

ISBN: 9780134434681

Author: Tom Pirnot

Publisher: PEARSON

See similar textbooks

Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear re…

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

Videos

Question

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Chapter 14.4, Problem 73E

To determine

a)

To find:

The number of years required to earn at least 9% on the investment.

To determine

b)

To find:

The number of years required to earn less than 6% on the investment.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 14.4, Problem 72E

Chapter 14.4, Problem 74E

Students have asked these similar questions

18.9. Let denote the boundary of the rectangle whose vertices are -2-2i, 2-21,2+i and -2+i in the positive direction. Evaluate each of the following integrals: L₁ = 2- (a). dz, (b). (d). ₁ = 22+2 [ dz, (e). √, z COS 2 dz dz, (c). L (2z+1)2dz, z(z+1)' (1). [e² si 1 sin z+ dz. (22+3)2

Q1: For, 0 <|z| < 1, evaluate the following integral where g is ana 9(5) inside and on the unit circle C: a) Sc - α) δε 915 αξί b) Sc d. -1/2 Llc function

纟 W₂ Find S-FX SB.MX

Chapter 14 Solutions

Mathematics All Around (6th Edition)

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.

a) To find: The number of years required to earn at least 9% on the investment.

Solution Summary: The author explains how to find the number of years required to earn at least 9% on the investment.