Probability that rolls-royce-s service share will be higher


Bombardier designs and manufactures trains and planes and relies on large deals from its customers for these high cost products. This series of large contracts makes for a very variable revenue stream, compared with the more even income it derives from long term service contracts. The shae of revenue from services dropped from 21% to 14% between 2007 and 2010 compared to the much higher figure of 51% for Rolls-Royce in 2010. In 2011, an analyst predicts that Bombardier's service share will drop to 13% with standard deviation of 1% in 2014 and and that Rolls-Royce's service share will increase to 54% with a standard deviation of 2%. Assuming you believe the analyst's forecast, what is the probability that

a)Bombardiers service share will be lower in 2014 than in 2010
b)Rolls-Royce's service share will be higher in 2014 than in 2010
c)State assumptions

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Basic Statistics: Probability that rolls-royce-s service share will be higher
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