A consensus forecast is the average of a large number of individual analysts\' f

Question

A consensus forecast is the average of a large number of individual analysts' forecasts Suppose that individual forecasts of a particular interest rate are normally distributed with a mean of 3 percent and a standard deviation of 1.3 percent (Round k. Q1. and Q3 to 3 decimal place, and round percentages in part a to the nearest whole number. Round the z value to 3 decimal places in part a and 3 decimals in part b.) What percentage of individual forecasts are at or below the 10th percentile of the distribution of forecasts? What percentage are at or above the 10th percentile? Find the 10th percentile of the distribution of individual forecasts. Find the first quartile. Q_1, and the third quartile. Q_3 of the distribution of individual forecasts Follow the methods outlined.in part a of compute the inverse cdf in MINITAB

Explanation / Answer

mean = 3

standard deviation = 1.3

x = mean + z*standard deviation

a) for 10 percentile we will take the zscore from the z table - 2.33

therefore for both the parts the value for x = 3+(-2.33)*1.3 = -0.029

b) in this we neet to find the q1 and q3

q1 = 25 percentile

the z value for this will be = -0.67

therefore x = 3 + (-0.67)*1.3 = 2.129

q3 = 75 percentile

the z value for this will be = 0.68

therefore x = 3+(0.68)*1.3 = 3.884

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