Assume Project A has an expected value of $35,000 and a standard deviation () of

Question

Assume Project A has an expected value of $35,000 and a standard deviation () of $7,000.

(Round your answer to 4 decimal places.)

a. What is the probability that the outcome will be between $31,500 and $38,500?

b. What is the probability that the outcome will be between $28,000 and $42,000?

c. What is the probability that the outcome will be at least $18,000?

d. What is the probability that the outcome will be less than $43,020?

e. What is the probability that the outcome will be less than $28,000 or greater than $42,000?
  

Explanation / Answer

a) z1 = (31500-35000)/7000 = -0.5 z2 = (38500-35000)/7000 = 0.5 Probability = 0.19146+0.19146 = 38.29% b) z1 = (28000-35000)/7000 = -1 z2 = (42000-35000)/7000 = 1 Probability = 0.34134+0.34134 = 68.27% c) z = (18000-35000)/7000 = -2.43 Probability at least 18000 = 0.5+0.49245 = 99.25% d) z = (43020-35000)/7000 = 1.14571 Probability less than 43020 = 0.5+0.37493 = 87.49% e) z1 = (28000-35000)/7000 = -1 z2 = (42000-35000)/7000 = 1 Probability less than 28000 or more than 42000 = 1-0.6827 = 31.73%

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