Assignment:
The daily exchange rate of one dollar in euros during the first three months of 2007 can be inferred to have the following distribution.
| x |
P(x) |
| 0.73 |
0.05 |
| 0.74 |
0.1 |
| 0.75 |
0.25 |
| 0.76 |
0.4 |
| 0.77 |
0.15 |
| 0.78 |
0.05 |
a. Show that P (x) is a probability distribution.
b. What is the probability that the exchange rate on a given day during this period will be at least 0.75?
c. What is the probability that the exchange rate on a given day during this period will be less than 0.77?
d. If daily exchange rates are independent of one another, what is the probability that for two days in a row the exchange rate will be above 0.75?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.