SOLUTION: consider that the historical return of an investment follows a normal distribution with a mean of 2000 dollars and a standard deviation of 300 dollars. what is the upper limit for

Algebra ->  Probability-and-statistics -> SOLUTION: consider that the historical return of an investment follows a normal distribution with a mean of 2000 dollars and a standard deviation of 300 dollars. what is the upper limit for       Log On


   

Question 1100875: consider that the historical return of an investment follows a normal distribution with a mean of 2000 dollars and a standard deviation of 300 dollars. what is the upper limit for which 60% of all investment return values are located given that the lower limit is at 1450 dollars?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
consider that the historical return of an investment follows a normal distribution with a mean of 2000 dollars and a standard deviation of 300 dollars. what is the upper limit for which 60% of all investment return values are located given that the lower limit is at 1450 dollars?
---
z(1450) = (1450-2000)/300) = -1.8333
---
Find the area to the left of z = -1.8333
normalcdf(-100,-1.8333) = 0.0333
===
Add 0.6 to get area to upper limit = 0.6333
---
Find the z-value with a left tail of 0.6333
invNorm(0.6333) = 0.341
------
Find the corresponding dollar value
x = 0.341*300+2000 = $2102.24
---------------
Cheers,
Stan H.
----------