document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=465610>Question 465610</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An analyst believes that the price of an IBM stock is a normally distributed random variable with mean $105 and variance 24. The analyst would like to determine a value such that there is a .90 probability that the price of the stock will be greater than the value. Find the required value. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #319054 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=319054\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> An analyst believes that the price of an IBM stock is a normally distributed random variable with mean $105 and variance 24. The analyst would like to determine a value such that there is a .90 probability that the price of the stock will be greater than the value. Find the required value.<BR>\n" );
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document.write( "Find the z-value with a 0.90 right tail: invNorm(0.10) = -1.2816<BR>\n" );
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document.write( "Use x = zs+u to find the corresponding price.<BR>\n" );
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document.write( "price = -1.2816*24+105 = $74.24<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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