Question

A bond is evaluated on the scale 0 to 1, with 0.55 needed to be considered investment grade. Bond evaluations are modelled by the following density: 4x for 0 ≤ x ≤ 1/2 f(x)={ 4−4x for 1/2 ≤ x ≤ 1 0 otherwise What is the probability that a random bond is classified as investment grade? A. 69.5% B. 30.5% C. 40.5% D. 59.5% E. 60.5%

Name: a bond is evaluated on the scale 0 to 1 with 055 needed to be considered investment grade bond evaluations are modelled by the following density 4x for 0 x 12 fx44x for12x1 0 otherwise what is the pro
Uploaded: 2022-10-26T18:43:53-08:00
Duration: 2 min 32 s
Channel: Joseph David
Description: a bond is evaluated on the scale 0 to 1 with 055 needed to be considered investment grade bond evaluations are modelled by the following density 4x for 0 x 12 fx44x for12x1 0 otherwise what is the pro

          A bond is evaluated on the scale 0 to 1, with 0.55 needed to be considered investment grade. Bond evaluations are modelled by the following density:
      4x     for 0 ≤ x ≤ 1/2 
f(x)={
      4−4x   for 1/2 ≤ x ≤ 1 
      0      otherwise
What is the probability that a random bond is classified as investment grade?
A. 69.5% B. 30.5% C. 40.5% D. 59.5% E. 60.5%

Added by Yuan C.

Finite Mathematics and Calculus with Applications

Margaret L. Lial, Raymond N. Greenwell,… 9th Edition

Instant Answer

Solved by Expert Joseph David

10/26/2022

Step 1

55 or higher. This means we need to integrate the density function from 0.55 to 1. The density function is split into two parts, so we need to consider both parts separately. For the first part (0 ≤ x ≤ 1/2), since 0.55 > 1/2, we don't need to consider this Show more…

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A bond is evaluated on the scale 0 to 1, with 0.55 needed to be considered investment grade. Bond evaluations are modelled by the following density: 4x for 0 ≤ x ≤ 1/2 f(x)={ 4−4x for 1/2 ≤ x ≤ 1 0 otherwise What is the probability that a random bond is classified as investment grade? A. 69.5% B. 30.5% C. 40.5% D. 59.5% E. 60.5%