QuestionQuestion

2. An investor has invested in nine different investments, The dollar return on the different investments are probabistically independent, and each return follows a normal distribution with means $50,000 and standard deviation of $10,000.
a. There is a 1% that the total return on the nine investments is less than what value? (Use the fact the sum of independent normal random variables is normally distributed, with mean equal to the sum of the individual means and variance equal to the sum of the individual variance.)
b. What is the probability that the investor’s total return is between $400,000 and 520,000?

Solution PreviewSolution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

    $8.00 for this solution

    PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

    Find A Tutor

    View available General Statistics Tutors

    Get College Homework Help.

    Are you sure you don't want to upload any files?

    Fast tutor response requires as much info as possible.

    Decision:
    Upload a file
    Continue without uploading

    SUBMIT YOUR HOMEWORK
    We couldn't find that subject.
    Please select the best match from the list below.

    We'll send you an email right away. If it's not in your inbox, check your spam folder.

    • 1
    • 2
    • 3
    Live Chats