SOLUTION: Find the following z values for the standard normal variable Z. Use Table 1. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
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-> SOLUTION: Find the following z values for the standard normal variable Z. Use Table 1. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
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Question 787580: Find the following z values for the standard normal variable Z. Use Table 1. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
a. P(Z ≤ z) = 0.1278
b. P(z ≤ Z ≤ 0) = 0.1902
c. P(Z > z ) = 0.8401
d. P(0.38 ≤ Z ≤ z) = 0.3268
Let X be normally distributed with mean μ = 4,000 and standard deviation σ = 2,600. Use Table 1.
a.
Find x such that P(X ≤ x) = 0.9382. (Round “z” value to 2 decimal places, and final answer to the nearest whole number.)
x
b.
Find x such that P(X > x) = 0.025. (Round “z” value to 2 decimal places, and final answer to the nearest whole number.)
x
c.
Find x such that P(4,000 ≤ X ≤ x) = 0.1271. (Round “z” value to 2 decimal places, and final answer to the nearest whole number.)
x
d.
Find x such that P(X ≤ x) = 0.484. (Round “z” value to 2 decimal places, and final answer to the nearest whole number.)
3.value:
1.00 points
A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 89%. What is the risk (standard deviation) that this investment manager has assumed in his calculation if it is known that returns are normally distributed with a mean of 4.7%? Use Table 1. (Round "z" value to 2 decimal places and final answer to 3 decimal places.)
You are considering the risk-return profile of two mutual funds for investment. The relatively risky fund promises an expected return of 10.3% with a standard deviation of 17.8%. The relatively less risky fund promises an expected return and standard deviation of 4.0% and 6.0%, respectively. Assume that the returns are approximately normally distributed. Use Table 1.
a-1.
Calculate the probability of earning a negative return for each fund. (Round "z" value to 2 decimal places and final answer to 4 decimal places.)
Probability
Riskier fund
Less risky fund
a-2.
Which mutual fund will you pick if your objective is to minimize the probability of earning a negative return?
Less risky
Riskier
b-1.
Calculate the probability of earning a return above 11.4% for each fund. (Round "z" value to 2 decimal places and final answer to 4 decimal places.)
Probability
Riskier fund
Less risky fund
b-2.
Which mutual fund will you pick if your objective is to maximize the probability of earning a return above 11.4%?
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