Normal distribution: word problems

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unzvq0204

Mathematics

Description

Annual return of a stick is normally distributed with mean of 4% and standard deviation of 5%. Find the probability that the one-year return of this stock would be negative.

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Explanation & Answer

x =0, z = (0-4%)/5% = -0.8 

P(x<0) = P(Z<-0.8) = 0.212


Anonymous
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