Explore BrainMass

# Normal Distribution, Time Value of Money

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

1.Consider the normal distributions drawn below (with different scales)

They both have m = 20 and the area of the shaded region of each is 0.90. Which of the following holds?
a. x1 < x2
b. x1 > x2
c. x1 = x2
d. There is not enough information
e. x1 >= x2

2.If you deposit \$5000 into a fund paying 6% interest compounded quarterly, how much can you withdraw at the end of each quarter for 5 years?
a. \$135.92
b. \$970.45
c. \$291.23
d. \$215.17
e. none of the above

Please see the attached file for full problem description.

© BrainMass Inc. brainmass.com March 4, 2021, 6:11 pm ad1c9bdddf
https://brainmass.com/statistics/normal-distribution/normal-distribution-time-value-of-money-33826

#### Solution Preview

1.Consider the normal distributions drawn below (with different scales)

They both have m = 20 and the area of the shaded region of each is 0.90. Which of the following holds?
a. x1 < x2
b. x1 > x2
c. x1 = x2
d. There is not enough information
e. x1 >= x2

Answer: a. x1 < x2

The standard deviation for b) s= 8 is greater than that of a) s= 5.
This means that the spread around the mean is more for b) than for a)
Thus ...

#### Solution Summary

Answers Multiple choice questions on Normal Distribution, Time Value of Money.

\$2.49