2010-03-03_142540_KhalidSuda (1)

# Label the horizontal axis with values of 354045505560

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Sketch a normal curve for the probability density function. Label the horizontal axis with values of 35,40,45,50,55,60, and 65. Figure 6.4 (page 233) shows that the normal curve almost touches the horizontal axis at three standard deviations below and at three standard deviations above the mean (in this case at 35 and 65). (1 point) b. What is the probability the random variable will assume a value between 45 and 55? (NORMDIST) (1 point) c. What is the probability the random variable will assume a value between 40 and 60? (NORMDIST) (1 point) Given that z is a standard normal random variable, compute the following probabilities. a. (NORMSDIST) (1 point) b. (NORMSDIST) (1 point) c. (NORMSDIST) (1 point) d. (NORMSDIST) (1 point) e. (NORMSDIST) (1 point) Given that z is a standard normal random variable, compute the following probabilities. a. (NORMSDIST) (1 point) b. (NORMSDIST) (1 point) c. (NORMSDIST) (1 point) Given that z is a standard normal random variable, find z for each situation. a. The area to the left of z is .2119. (NORMSINV) (1 point) b. The area between – z and z is .9030. (NORMSINV) (1 point) c. The area between – z and z is .2052. (NORMSINV) (1 point) d. The area to the left of z is .9948. (NORMSINV) (1 point) e. The area to the right of z is .6915. (NORMSINV) (1 point) For borrowers with good credit scores, the mean debt for revolving and installment accounts is \$15,015 ( BusinessWeek , March 20, 2006). Assume the standard deviation is \$3540 and that debt amounts are normally distributed. a. What is the probability that the debt for a randomly selected borrower with good credit is more than \$18,000? (NORMSDIST) (1 point) b. What is the probability that the debt for a randomly selected borrower with good credit is less than \$10,000? (NORMSDIST) (1 point) c. What is the probability that the debt for a randomly selected borrower with good credit is between \$12,000 and \$18,000? (NORMSDIST) (1 point) d. What is the probability that the debt for a randomly selected borrower with good credit is no more than \$14,000? (NORMSDIST) (1 point) 30 35 40 45 50 55 60 65 70 0.0000 0.0100 0.0200 0.0300 0.0400 0.0500 0.0600 0.0700 0.0800 0.0900 0.0009 0.0108 0.0484 0.0798 0.0484 0.0108 0.0009
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