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anonymous

  • 5 years ago

You consider investing in a new hotel. The expected revenues are distributed normally with an average of 3 million dollars and a standard deviation of 1 million dollars. What is the probability that your revenues will be lower than 2 million dollars?

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  1. amistre64
    • 5 years ago
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    |dw:1327360544078:dw|

  2. amistre64
    • 5 years ago
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    since we are 1 sd from the mean this makes life a bit easier

  3. amistre64
    • 5 years ago
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    z = (x-mean)/sd z = (2-3)/1 = -1 do we use a ztable or just do an empirical rule estimate?

  4. amistre64
    • 5 years ago
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    50 - 34 = 20 - 4 = 16% perhaps?

  5. anonymous
    • 5 years ago
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    What you calculated is what I needed (I think). I just do not know how you arrived at 16%...? I think I am supposed to do an empirical rule estimate over here. I am so stupid with such things. I cannot believe it lol

  6. amistre64
    • 5 years ago
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    since the 2 is 1 sd from the mean; that area between 2 and 3 consists of 34% of the data according to the empirical estimates

  7. amistre64
    • 5 years ago
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    |dw:1327362044020:dw|

  8. amistre64
    • 5 years ago
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    since 68% of the data falls within 1sd of the mean, half is to the left of the mean and the other half to the right

  9. anonymous
    • 5 years ago
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    Now I get it!!!

  10. amistre64
    • 5 years ago
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    also good to know is that there is 50% of the data on the left and 50% on the right of the means; so if we know part of the area we can determine the rest

  11. amistre64
    • 5 years ago
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    50-34 = whats left over

  12. amistre64
    • 5 years ago
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    elementary stats class is all just different ways of seeing this same curve

  13. anonymous
    • 5 years ago
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    This is actually for my economy class... I took stats, but dear Lord... THANK YOU

  14. amistre64
    • 5 years ago
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    :) yw, and good luck

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