SOLUTION: Consider an investment whose return is normally distributed with mean of 8% and a standard deviation of 5%. Determine the probability of losing money.

SOLUTION: Consider an investment whose return is normally distributed with mean of 8% and a standard deviation of 5%. Determine the probability of losing money.

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Question 882757: Consider an investment whose return is normally distributed with mean of 8% and a standard deviation of 5%. Determine the probability of losing money.
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
Let x = -.005 %
P(z ≤ -8.005/5) = P(z ≤ -1.601) = .0547 0r 5.47% chance of losing money
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