Gabriel buys a $2,000 fixed-rate bond with a 4% coupon and five years to maturity. How much interest will he earn over the life
1 answer:
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Answer:
93.32% probability of obtaining a value less than or equal to -7.
Step-by-step explanation:
Problems of normally distributed samples are solved using the z-score formula.
In a set with mean and standard deviation
, the zscore of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.
In this problem, we have that:
What is the likelihood of obtaining a value less than or equal to -7?
This is the pvalue of Z when X = -7.
So
has a pvalue of 0.9332.
So there is a 93.32% probability of obtaining a value less than or equal to -7.
HI there i know this is way later than you needed it but I though i would give you the correct answer which is B x=±√15/3 i also have proof from an old test that my answer is right.
