Please answer, 11, 12, 13, 14, 15 questions. Thank you Use the following informa

Question

Please answer, 11, 12, 13, 14, 15 questions. Thank you

Use the following information to answer the next three questions. The yearly rate of return X on stock indexes (which combine many individual stocks) is ap- proximately normal with mean 5% and standard deviation 10%. 11. (4pt) The market is down for the year if the yearly rate of return is less than zero. What is probability that the market will be down this year? a) 0.3085 b) 1.0000 c) 0.7778 d) 0.6915 10 0 10 ly rate of return will be 15% or greater this year? a) 0.8413 b) 0.5290 c) 0.4286 d) 0.1587 13. (4p) Between what symmetrical values about the mean 68.26% of all the yearly rates of return lie? a)-10% and 10% b)-5% and 15% c) 0% and 10% d) None of the above 14. (4pt) It is believed that the weight of a bar of iron purchased by a local steel mill is normally distributed with a mean of 25 lbs and a variance of 4, 99.01% of the bars weigh more that what value? 95 (a) 29.66 (b) 20.34 (c) 19.84 (d) 30.16 15. (4pt) Under which one of the following normal curves you have the largest area over the interval from -1 to 1? Ve) Normal with mean 0 and standard deviation 1 b) Normal with mean 0 and standard deviation 2 d) Normal with mean -0.5 and standard deviation 1

Explanation / Answer

Q11) P(X<0)

= P(Z<(0-5)/10)

P(Z<-0.50)

= 0.3085

Option A is Correct

Q12) P( X>15)

= P(Z>(15-5)/10)

P(Z>1)

= 0.1587

Option D is Correct

Q13) Option B is Correct. Between -5% to 15%. By Empirical rule

Q14) P(X>x) = 99.01

x= -2.33*2+25 = 20.34

Option B is Correct

Q15) Option B is Correct

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