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.

Algebra ->  Probability-and-statistics -> 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.      Log On


   

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) About Me  (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