If a person bought one share of Google stock within the last year, what is the p

Question

If a person bought one share of Google stock within the last year, what is the probability that the stock on that day closed at more than $750? If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed within $75 of the mean for that year? Suppose a person within the last year claimed to have bought Google stock at closing at $650 per share. Would such a price be considered unusual? Be sure to use the definition of unusual from our textbook. Mean=877.57 Standard Deviation=74.01

Explanation / Answer

Mean = 877.57

Standard Deviation = 74.01

a) z = (750 - 877.57)/74.01

z = -1.72

P = 0.9573

b) Approx 0.6875, Using SD rule

For the normal distribution, the values within onestandard deviation of the mean account for 68.27% of the set; while within two standard deviations account for 95.45%; and within three standard deviations account for 99.73%.

c) Unsual = less or more than 3SD from mean

877.57 - 3 * 74.01 = 655.54

Yes, unusual

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.