00:01
Hello students, let's do this question.
00:03
The average price of the company, that is, mu, is equal to 30 and standard deviation is equals to $8 .2.
00:11
That is, random variable x follows.
00:14
Normal distribution with mean mu is equals to $30 and standard deviation sigma is equals to $8 .2.
00:21
From this, we have to find out probability that a company will have stock price at least $1 .40, that is, we have to find probability that x greater than or equal to 40, which equals to 1 minus probability that x less than or equal to 40 is equal to 1 minus probability that z less than or equal to 40 minus 30 divided by 8 .2 .2 .2 .2 .2.
00:52
Therefore, we find this probability by using z table and this probability is 1 minus 0 .8 .8.
00:59
869 is equal to 0 .1131.
01:04
The next probability that a company will have stock price no higher than dollar 20, that is probability of x less than 20, is equal to probability that z less than are equal to 20 minus 30 divided by 8 .2 is equal to probability that z less than or equal to minus 1 .295 equals to 0 .113.
01:30
And how does high stock price have to be put a company in the top 10 %? so here top 10 % are given...