Question

xThe closing price of Schnur Sporting Goods Inc. common stock is uniformly distributed between $18 and $28 per share. What is the probability that the stock price will be: More than $20? (Round your answer to 4 decimal places.)

Answer 1

Answer:

The  probability is $P(X > 20 ) = 0.8$

Step-by-step explanation:

From the question we are told that

  The closing price of Schnur Sporting Goods Inc. common stock is uniformly distributed between $18 and $28 per share.

Given that the stock is uniformly distributed then the probability that the stock price will be more than $20 is mathematically evaluated as

       $P(X > 20 ) = 1 - P(X < 20 )$

Since it is uniformly distribute  between $18 and $28 per share then we can solve is as follows

=>     $P(X > 20 ) = 1 - [\frac{ 20 - 18 }{28 -18} ]$

=>    $P(X > 20 ) = 0.8$