Question 1. The weekly earnings of fast-food restaurant employees are normally distributed with a mean of $395. If only 10.2% of the employees have a weekly income of more than $422.94, what is the value of the standard deviation of the weekly earnings of the employees?
Question 2. An investment advisor recommends the purchase of shares in Infogenics, Inc. He has made the following predictions:
P(Stock goes up 20% | Rise in GDP) = .6
P(Stock goes up 20% | Level GDP) = .5
P(Stock goes up 20% | Fall in GDP) = .4
An economist has predicted that the probability of a rise in the GDP is 20%, whereas the probability of a fall in the GDP is 40%.
What is the probability that the stock will go up 20%?