Mean of a normal probability distribution
The mean of a normal probability distribution is 500 and the standard deviation is 10. About 95 percent of the observations lie between what two values?
475 and 525
480 and 520
400 and 600
350 and 650
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Dobbs Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it .
Suppose the company is organized so that the purchasing manager bears the primary responsibility for purchasing materials, and the production manager is responsible for the use of materials.
One study found that the average amount spent on textbooks by students is $434.75 per semester with a standard deviation of $77. If the expenditures on textbooks are normally distributed, then the probability of spending above what amount is 18%?
TLC Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below.
DDF Corporation sold land it had used for parking and storage for 20 years for $575,000. Its basis in the land was $68,000. It also sold some manufacturing equipment for $125,000 that it replaced with more modern equipment.
The weekly mean income of a group of executives is $1000 and the standard deviation of this group is $100. The distribution is normal. What percent of the executives have an income of $925 or less?
Madison Corp had two issues of securities outstanding-common stock and a 5 percent convertible bond issue in the face amount of $10,000,000. Interest payment dates of the bond issue are June 30 and December 31.
What pay-off do bondholders expect to receive in the event of a recession? What is the promised return on the company's debt?
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