For the 900 trading days from January 2003 through July 2006, the daily closing

Question

For the 900 trading days from January 2003 through July 2006, the daily closing price of IBM stock (in $) is well modelled by a Normal model with mean $83.99 and standard deviation $6.29. Use the 68-95-99.7 Rule to approximate the following probabilities rather than using technology to find the values above precisely. Complete parts (a) through (d a) According to this model, what is the probability that on a randomly selected day in this period the stock price closed above $77.70 The probability is % (Type an integer or a decimal.)

Explanation / Answer

here probabiklity that randomely selected day in this period the stock price closed above 77.7

=P(X>77.70) =P(Z>(77.70-83.99)/6.29)=P(Z>-1) =84 %

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