1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alja [10]
3 years ago
9

Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, port

folio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 49.5 and a standard deviation of 15. The customers with scores in the bottom 10% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
Mathematics
1 answer:
GrogVix [38]3 years ago
7 0

Answer:

a=49.5 -1.28*15=30.3

So the value of height that separates the bottom 10% of data from the top 90% is 30.3.  

If the score is lower than 30.3 we consider this score as risk averse

Step-by-step explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".  

Solution to the problem

Let X the random variable that represent the scores of a population, and for this case we know the distribution for X is given by:

X \sim N(49.5,15)  

Where \mu=49.5 and \sigma=15

We are interested in the bottom 10% of the data.

For this part we want to find a value a, such that we satisfy this condition:

P(X>a)=0.9   (a)

P(X   (b)

Both conditions are equivalent on this case. We can use the z score again in order to find the value a.  

As we can see on the figure attached the z value that satisfy the condition with 0.1 of the area on the left and 0.9 of the area on the right it's z=-1.28. On this case P(Z<-1.28)=0.1 and P(z>-1.28)=0.9

If we use condition (b) from previous we have this:

P(X  

P(z

But we know which value of z satisfy the previous equation so then we can do this:

z=-1.28

And if we solve for a we got

a=49.5 -1.28*15=30.3

So the value of height that separates the bottom 10% of data from the top 90% is 30.3.  

If the score is lower than 30.3 we consider this score as risk averse

You might be interested in
What does n equal in 2(n+5)=-2
KonstantinChe [14]
1. 2n + 2*5 =2
2. 2n + 10 = 2
3. 2n = 2 -10
4. 2n= -8
5. n = -8/2
6. n = -4
6 0
3 years ago
An investment of 100,000 AED increases at a rate of 16% per year. What is
stepan [7]

Answer:

1,946,075.95 AED

Step-by-step explanation:

Firstly, we write the general formula for an exponential increase as follows;

V(t) = A( 1 + r)^t

where V(t) is the value after some number of years t

A is the investment amount which is 100,000 AED

r is the rate of increase which is 16% = 16/100 = 0.16

t is the number of years which is 20

substituting these values;

V(20) = 100,000( 1 + 0.16)^20

V(20) = 100,000(1.16)^20

V(20) = 1,946,075.95 AED

7 0
3 years ago
What is 7a+3b+7c please help meeee
trasher [3.6K]

Answer:

I can't help cs it is alredy in simplies form

Step-by-step explanation:

3 0
2 years ago
Please answer number 15 I’ll give brainliest thanks!
kumpel [21]

Answer:

C

Step-by-step explanation:

i belive it is C because if you look at it your just multiplying by 4 hope this helps!!! :D

6 0
3 years ago
One endpoint of a line segment is (–6, 4), and the midpoint of the segment is (–2, 7). What are the coordinates of the other end
Arturiano [62]

Answer:

A. (2, 10)

Step-by-step explanation:

If there are two points (x1,y1) and (x2,y2) on a coordinates plane then

coordinates of the midpoint is given by (x1+x2)/2, (y1+y2)/2

__________________________________________________

Given

one endpoint is (–6, 4) and midpoint is (–2, 7)

let coordinates of other endpoint be (x,y)

now if one endpoint is (–6, 4) and other endpoint is (x,y)

then coordinates of midpoint is ((-6+x)/2 , (4+y)/2)

while the coordinates of midpoint given  is  (–2, 7)

thus (–2, 7) should be equal to ((-6+x)/2 , (4+y)/2)

-2 = (-6+x)/2             and   7 = (4+y)/2

=> -2*2 = -6+x                 => 7*2 = 4+y

=> -4 = -6+x                    => 14 = 4+y

=> -4+6 = x                     => 14-4 = y

=> x = 2                           => 10 = y

Thus, coordinates of the other endpoint is(2,10)

6 0
3 years ago
Other questions:
  • A moving company charges a flat rate of $150, and an additional $5 for each box. if a taxi service would charge no flat rate and
    12·1 answer
  • The volume of a cylinder is given by the formula V = (pi)r^2h, where r is the radius of the cylinder and h is the height. Suppos
    8·2 answers
  • Name the property the equation illustrates.
    11·2 answers
  • 650g:3.5kg simplest form
    9·2 answers
  • If Shadrik can read 29 pages of a book in one hour, how many pages could he read in 15 hours if he continued to read at this rat
    9·1 answer
  • Suppose that you have the following function. void mystery(int&amp; one, int two) { int temp temp = one; one = two; two = temp;
    12·1 answer
  • Y is directly proportional to x
    12·1 answer
  • Since an instant replay system for tennis was introduced at a major tournament, men challenged 1425 referee calls with the resul
    8·1 answer
  • Write the equation of the line in fully simplified slope-intercept form.
    8·1 answer
  • Work out the highest common factor (HCF) of 180 and 240
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!