The daily exchange rates for the five-year period 2003 to 2008 between currency

Question

The daily exchange rates for the five-year period 2003 to 2008 between currency A and currency B are well modeled by a normal distribution with mean 1.313 in currency A (to currency B) and standard deviation 0.021 in currency A Given this model, and using the 68-95-99.7 rule to approximate the probabilities rather than using technology to find the values more precisely, complete parts (a) through (d) a) What is the probability that on a randomly selected day during this period, a unit of currency B was worth less than 1.313 units of currency A? The probability is 11%

Explanation / Answer

Mean is 1.313 and s is 0.021

we need P(x<1.313) which is basically P(z<0) where z is (x-mean)/s

here x is 1.313 and mean is 1.313

thus P(z<0)=0.5 (left half of normal distribution curve)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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