Investment A has an expected return of 7.8% with a standard deviation of 2%. Investment B has an expected return of 7.2% with a standard deviation of 3.1%. Which stock is more likely to have a return greater than 10%? A) Stock A B) Stock B C) The probability is the same for both A and B. D) Unable to determine.

An insurance company will insure a $75,000 automobile for its full value against theft by apolicy with a premium of $1,500 per year. Suppose that the probability that the automobile willbe stolen is 0.0075.a. Construct the probability distribution.b. Calculate the insurance company's expected net profit for this policy.

A department store manager has monitored the number of complaints received per week about poor service. The probabilities for numbers of complaints in a week, established by this review, are shown in the table. Number of complaints Probability 0 0.16 1 0.26 2 0.35 week? 3 0.10 4 0.08 5 0.05 What is the standard deviation of complaints received per Please round your answer to the nearest hundredth. Note that the correct answer will be evaluated based on the full-precision result you would obtain using Excel.

The chance of an IRS audit for a tax return with over $25,000 in income is about 2% per year. We are interested in the expected number of audits a person with that income has in a 16-year period. Assume each year is independent. Part (a) Part (b) List the values that X may take on. X=0, 1, 2,..., 15, 16 OX= 1, 2, 3, OX= 1, 2, 3, OX=1,2,3,... 15, 16 98, 99, 100 Part (c) Give the distribution of X X-B 0.02 □ Part (d) How many audits are expected in a 16-year period? (Round your answer to two decimal places.) 0.32 audits Part (e) Find the probability that a person is not audited at all. (Round your answer to four decimal places.) Part (1) Find the probability that a person is audited more than twice. (Round your answer to four decimal places.)