4. A portfolio manager believes that tomOrTow's foreign exchange of the Euro per US dollar will be normally distributed with mean 2.03 and standard deviation 0.08. Using the manager's numbers, answer the following questions: What is the probability that tomorrow's rate will be above 2.08? b. What is the probability that tomorrow's rate will be below 1.87? a. What is the probability that tomorrow's rate will be between 2.00 and 2.20? C.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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4. A portfoho manager believes that tomorrow s foreign exchange of the Euro per US
dollar will be nomally distributed with mean 2.03 and standard deviation 0.08. Using
the manager's mumbers, answer the following questions:
a What is the probability that tomorrow's rate will be above 2.08?
b. What is the probability that tomorrow s rate will be below 1.87?
What is the probability that tomorrow's rate will be between 2.00 and 2.20?
a.
C.
5. A student is guessing on a ten question multiple choice quiz, the probability of
guessing correctly on the each question is .20. What is the probability that the student
gets exactly 2 questions right? What is the probability that she would guess more than
less than four questions right?
1S
6. An investment has probabilities 0.1, 0.2,0.35, 0.25 and 0.1 of giving returns equal to
40%, 30%, 15%, 5% and -15%. What is the expected retum and standard deviation of
returns?
7. The holders of an insurance policy file clams at an average rate of 0.45 per year. Use
the Poisson model to answer the following questions.
(a) Find the probability that a policyholder files at least one claim in ayear.
(b) Find the mean number of claims per policyholder per year.
Transcribed Image Text:4. A portfoho manager believes that tomorrow s foreign exchange of the Euro per US dollar will be nomally distributed with mean 2.03 and standard deviation 0.08. Using the manager's mumbers, answer the following questions: a What is the probability that tomorrow's rate will be above 2.08? b. What is the probability that tomorrow s rate will be below 1.87? What is the probability that tomorrow's rate will be between 2.00 and 2.20? a. C. 5. A student is guessing on a ten question multiple choice quiz, the probability of guessing correctly on the each question is .20. What is the probability that the student gets exactly 2 questions right? What is the probability that she would guess more than less than four questions right? 1S 6. An investment has probabilities 0.1, 0.2,0.35, 0.25 and 0.1 of giving returns equal to 40%, 30%, 15%, 5% and -15%. What is the expected retum and standard deviation of returns? 7. The holders of an insurance policy file clams at an average rate of 0.45 per year. Use the Poisson model to answer the following questions. (a) Find the probability that a policyholder files at least one claim in ayear. (b) Find the mean number of claims per policyholder per year.
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