You receive $1,200 today, $2,200 in one year, and $3,300 in two years. If you deposit these cash flows in an account earning 12%
1 answer:
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Answer:
a) 0.10 or 10%
b) 0.5417 or 54.17%
Explanation:
a) The median income of $60,000 is at the 50th percentile of the distribution. If 40% if incomes are above $72,000, then an income of $72,000 is at the 60th percentile of the distribution. Therefore, the probability that a family's income will be between $60,000 and $72,000 is:
b) If the distribution is known to be uniform, the probability that a random chosen family has an income below $65,000 is: