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 the individual forecasts for a particular interest rate are normally distributed with a mean of 3 percent and a standard deviation of 1.5 percent. A single analyst is randomly selected. Find the probability that his/her forecast is (a) At least 3.6 percent. (Round the z value to 2 decimal places. Round your answer to 4 decimal places.) P = (b) At most 9 percent. (Round the z value to 2 decimal places. Round your answer to 4 decimal places.) P= (c) Between 3.6 percent and 9 percent. (Round the z value to 2 decimal places.Round your answer to 4 decimal places.) P=

Explanation / Answer

Here mean is 3 and standard deviation is 1.5

a. We need to compute P(x>=3.6)=P(z>=3.6-3/1.5)=P(z>=0.4)=0.3446

b. Here we need to find P(x<=9)=P(z<=9-3/1.5)=P(z<=4)=1

c. P3.6<x<9)=P(0.4<z<4)=0.3445

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