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A venture capital company feels that the rate of return (X) on a proposed investment is approximately normally distributed with a mean of 30% and a standard deviation of 10%

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5.  A venture capital company feels that the rate of return (X) on a proposed investment is approximately normally distributed with a mean of 30% and a standard deviation of 10%.

a.  Find the probability that the return will exceed 55%.

b.  Find the probability that the return will be less than 22%

6.  The life expectancy of Timely brand watches follows a normal distribution with a mean of four years and a standard deviation of eight months.

a.  The company has a three-year warranty period on their watches. What percentage of their watches will be in operating condition after the warranty period?

b.  Ninety-five percent of the watches will have a life expectancy of greater than how many months?

c.  What are the minimum and the maximum life expectancy of the middle 95% of the watches?

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Hi there,

Here are my explanations:

5. a. ...

Solution Summary

The expert determines the rate of return on a proposed investment. Minimum and Maximum examples are determined.

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