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 6 percent and a standard deviation of 1.2 percent. A single analyst is randomly selected. Find the probability that his/her forecast is At least 3.6 percent. (Round your answer to 4 decimal places.) P _____ At most 8 percent. (Round your answer to 4 decimal places.) P _____ Between 3.6 percent and 8 percent. (Round your answer to 4 decimal places.) P _____

Explanation / Answer

(a)

Probability that forecast is at least 3.6 percent

= 0.9772

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(b)

Probability that forecast is at most 8 percent

= 0.9522

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(c)

Probability that forecast is between 3.6 percent and 8 percent

= 0.9295

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