Question

Suppose that the value of a stock varies each day from $13 to $24 with a uniform distribution. (a) Find the probability that the value of the stock is more than $17. (Round your answer to four decimal places.) (b) Find the probability that the value of the stock is between $17 and $21. (Round your answer to four decimal places.) (c) Find the upper quartile; 25% of all days the stock is above what value? (Enter your answer to the nearest cent.) (d) Given that the stock is greater than $16, find the probability that the stock is more than $20. (Round your answer to four decimal places.)

Answer 1

Answer:

a. P= 0.6364

b. P = 0.3636

c. Q = $21.25

d. P = 0.5

Step-by-step explanation:

given data

value of a stock varies = $13 to $24

solution

P (stock value is more than $17)

P = $\frac{(24-17)}{(24-13)}$

P =  $\frac{7}{11}$

P = 0.6364

and

P (value of the stock is between $17 and $21)

P = $\frac{(21-17)}{(24-13)}$

P = $\frac{4}{11}$

P = 0.3636  

and  

Let the upper quartile be Q

$\frac{(24 - Q)}{(24 - 13)} = 0.25$

$\frac{(24 - Q)}{11} = 0.25$

(24 - Q) = 2.75

so

Q = $21.25

and

P(X > 20 | X > 16)

P = $\frac{(24-20)}{(24-16)}$

P = $\frac{4}{8}$

P = 0.5