Probability Distribution - E-mail Potential Acquisition

E-mail Potential Acquisition

You've done a great job so far, but we need you to investigate another situation. BankTen is considering an acquisition and has narrowed the possibilities to three companies. All three of these acquisitions are ongoing businesses with a profit stream and can be acquired for about the same amount of capital.

Each of these acquisitions is similar from a strategic perspective for the bank and needs to be evaluated purely from a profit perspective. BankTen can only invest in one of these acquisitions. The vice president of finance is extremely concerned about the immediate impact on the profit for the next quarter and would like to invest in the venture that presents the least risk in the next quarter. The vice president of business development, however, wants to take a longer-term approach and invest in an acquisition that will help the profits of the bank over the next 10 years.

I'd like you to summarize the profit opportunities for each of the three companies. The information on profits is included below:

Data from the investment banking division

After analyzing the data for the past five years and examining the trends in the industry, we have calculated the quarterly profits for each of the potential acquisitions. Because of the sensitive nature of the information, we will only refer to these as company A, B, and C. The results have been summarized below.

The quarterly profit from company A is expected to behave like a normal distribution with a mean of $680,000 and standard deviation of $50,000.
The quarterly profit from company B is expected to behave like a uniform distribution between $500,000 and $900,000.
The quarterly profit from company C is expected to behave like an exponential distribution with a mean of $750,000.

You should also address the concerns from the vice presidents of finance and business development - which company would fit their criteria best? Finally, make a recommendation on which company you think the bank should acquire. Please be sure to provide your rationale!

******Please help me with this and show me how to do it.
Using our data set which is attached, Use the attached templete:
1.Begin your e-mail to AIU by first providing an overview of the database, that is, a story about the characteristics that may include types of variables, etc.
2.Be sure to include information about

Loebuck Grocery orders milk from a dairy on a weekly basis. The manager of the store has developed the following probabilitydistribution for demand per week (in cases):.........see attached

Decide whether the distribution is a probabilitydistribution. If it is not a probabilitydistribution, identify the property that is not satisfied. (References: example 3 and 4 page 197, end of section exercises 25 - 28 page 202 - 203)
x P(x)
0 0.49
1 0.05
2 0.32
3 0.07
4 0.02

Determine whether each of the following is a proper probabilitydistribution. If it is not, why?
a. X 0 5 10 15 20
P(X) 1/4 1/2 1/3 -1/4 1/4
b. X 0 2 4 6
P(X) 1 1.5 0.3 0.2
c. X 1 2 3
P(X) 1/4 1/2 1/4
d. X -2 3 7

What are the two basic laws of probability? What are the differences between a discrete probabilitydistribution and a continuous probabilitydistribution? Provide at least one example of each type of probabilitydistribution.
Answer

Find the indicated probabilities.
a. P (z > -0.89)
b. P (0.45 < z < 2.15)
Write the binomial probability as a normal probability using the continuity correction.
Binomial Probability Normal Probability
c. P ( x ≤ 56) P ( x < ? )
d. P ( x = 69 ) P ( ? < x < ?

1. Elwin Osbourne, CIO at GFS, Inc., is studying employee use of GFS e-mail for non-business communications. A random sample of 200 e-mail messages was selected. Thirty of the messages were not business related. The 95% confidence interval for the population proportion is _________.
a.0.091 to 0.209
b. 0.108 to 0.192

Given a normal distribution with a population mean of 100, a standard deviation of 10 and a sample size of n = 25, what is the probability that X is
a. less than 95?
b. between 95 and 97.5?
c. above 102.2?
d. There is a 65% chance that X is above what value?
Time spent using e-mail per session is normally distributed,

1. A small bag of Skittles candies has the following assortment: red (12), blue (5), orange (15), brown (0), green (16), and yellow (7). Construct the probabilitydistribution for x. X is color; so the p(green) = 16/n, where n is the total count, and so on...
2. Find the mean and standard deviation of the following probabilit