Probability that present value of the investment
Suppose the present value of a risky investment is approximately normally distributed with mean $10,000 and standard deviation $4,000. What is the probability that present value of the investment is less than $1,000? Greater than $20,000?
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Discuss the effect that sample size on the width of confidence intervals.
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What is the probability that present value of the investment is less than $1,000? Greater than $20,000?
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What is the probability that the student answers more than 20 questions correctly? What is the probability the student answers less than? questions correctly?
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