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It's just asking you to use the normal distribution to compute some probabilities. Do you know how to compute probabilities using a normal distribution?
The price of shares of Bank of Florida at the end of trading each day for the last year followed the normal distribution. Assume there were 240 trading days in the year. The mean price was $42.00 per share and the standard deviation was $2.25 per share.
A. What percent of the days was the price over $45.00? How many days would you estimate?
B. What percent of the days was the price between $38.00 and $40.00?
C. What was the stock's price on the highest 15 percent of days?
Can this problem be completed by using a formula?
I am totally lost in this part of the class. Can somebody please help me solve this problem. It is due in the next 12 hours and I am struggling.
It's just asking you to use the normal distribution to compute some probabilities. Do you know how to compute probabilities using a normal distribution?
I found the normal distribution formula to calculate the probabilities. I've got the start of the problem so now I know A=.09 and B=.15
The percent of the days that the price was over $45 is .09 Now I just don't know how to calculate how many days as an estimate? Would you multiply .09x240?
The percent of the days between $38 and $40 is .15
Now, this is where I am lost, how do I calculate the stock's price on the highest 15 percent of days. I understand I multipty 15 by something else and maybe divide but not sure where??
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