The question is: The average stock price for companies is $30. and the standardd

Question

The question is: The average stock price for companies is $30. and the standarddeviation is $8.20. Assume the stock prices are normallydistributed. A. What is the probability a company will have a sotck priceof at least $40? B. What is the probability a company will have a stock priceno higher then $20? C. How high does a sotck price have to be to put a comany inthe top 10%? The question is: The average stock price for companies is $30. and the standarddeviation is $8.20. Assume the stock prices are normallydistributed. A. What is the probability a company will have a sotck priceof at least $40? B. What is the probability a company will have a stock priceno higher then $20? C. How high does a sotck price have to be to put a comany inthe top 10%?

Explanation / Answer

X~N(30, 8.2^2) (a) P(X>=40)=P((x-)/ >=(40-30)/8.2)=P(Z>=1.22)=1-P(Z(c-30)/8.2=1.28--> c=30+1.28(8.2)=40.5

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