Economic problems

Assignment Requirements

 

Question 38 Consider that variable x is normally distributed with a mean of 25 and a standard deviation of 6. What is the probability when I randomly choose one observation I will get a value between 27 and 29?

Question 39 If the random variable Z has a standard normal distribution, calculate the following probabilities.
– P(Z > 1.7) =
– P(Z < 1.7) =
– P(Z > -1.7) =
– P(Z < -1.7) =
– P(-1.7 < Z < 1.7)

Question 40 If the random variable X has a normal distribution with mean 40 and std. dev. 5, calculate the following probabilities.
– P(X > 43) =
– P(X < 38) =
– P(X = 40) =
– P(X > 23) =

Question 41 The time (Y) it takes your professor to drive home each night is normally distributed with mean 15 minutes and standard deviation 2 minutes. Find the following probabilities. Draw a picture of the normal distribution and show (shade) the area that represents the probability you are calculating.
– P(Y > 25) =
– P( 11 < Y < 19) =
– P (Y < 18) =

Question 42 The expected NPV for a project to be undertaken is 35466
a) with a standard deviation of 20300. What is the probability for a negative NPV?
b) with a standard deviation of 10300. What is the probability for a negative NPV?

 

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