The average stock price for a company is $30, and the variance is 67.24. Assume that the stock prices are normally distributed. Therefore, the probability a company will have a stock price at least $40 is Select one: a. 0.8888 b. 0.0000 c. 0.1112 d. none of them
Added by Amparo N.
Step 1
We know that variance is the square of standard deviation, so: Standard deviation = sqrt(variance) = sqrt(67.24) = 8.2 Show more…
Show all steps
Close
Your feedback will help us improve your experience
Pritesh Ranjan and 98 other Intro Stats / AP Statistics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
The price of a stock is uniformly distributed between $30 and $50. a) What is the probability that the stock price will be more than $40? b) What is the probability that the stock price will be less than or equal to $35? c) What is the probability that the stock price will be between $35 and $45? d) Determine the expected price of the stock. e) Determine the standard deviation for the stock price
Thuc N.
The average stock price for companies making up the $\operatorname{S\&P} 500$ is $\$ 30,$ and the standard deviation is $\$ 8.20$ (BusinessWeek, Special Annual Issue, Spring 2003 ). Assume the stock prices are normally distributed. a. What is the probability a company will have a stock price of at least $\$ 40 ?$ b. What is the probability a company will have a stock price no higher than $\$ 20 ?$ c. How high does a stock price have to be to put a company in the top $10 \% ?$
Recommended Textbooks
Elementary Statistics a Step by Step Approach
The Practice of Statistics for AP
Introductory Statistics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD