Answer:
b) Aa per life cylce theory, a person will save during his work time and dissave during retirement time. So he will save a part of his income up to retirement.
c) Mary's market value of home was $400000.when its value decreased 50%,it will reduce to $200000.so it will badly affect his saving also.
d) Mary's annual salary is $100000.If it decreased 50%, it will become 50000.so it may highly affect his saving than consumption.
Answer:
The probability that the project will finish in 16 months is 0.7.
Explanation:
From the data the mean time is given as
The variance is given as
So the standard deviation is
Now the X is given as 16 so
Calculating the z score as
So for the z score of 0.5 the probability is given in Excel as
=NORMSDIST(0.5)
=0.69 ≈0.7
So the probability that the project will finish in 16 months is 0.7.