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irinina [24]
3 years ago
13

An analyst is forecasting net income for Excellence Corporation for the next fiscal year. Her low-end estimate of net income is

$250,000, and her high-end estimate is $350,000. Prior research allows her to assume that net income follows a continuous uniform distribution. The probability that net income will be greater than or equal to $337,500 is ________. 0.125
Business
1 answer:
KIM [24]3 years ago
8 0

Answer:

12.5%

Explanation:

We are estimating the probability to be greater than or equal to $337,500

This probability will be

P(X > $337,500) = (high-end estimate - 337500) / (337500 - low-end estimate)

P(X > $337,500) = (350000-337500) / (350000-250000) = 0.125

                           = 0.125*100

                           = <em>12.5%</em>

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