Determine the value of the lower limit

Reference no: EM13982836

1. The price of a share of Kraft stock is normally distributed with mean 33.30 and standard deviation 6.10 What is the probability that on a randomly chosen day in the period for which our assumptions are made, the price of the stock will be more than $40 per share? Less than $30 per share?

2. The amount of oil pumped daily at Standard Oil's facilities in Prudhoe Bay is normally distributed with mean 800,000 barrels and standard deviation 10,000. In determining the amount of oil the company must report as its lower limit of daily production, the company wants to choose an amount such that for 80% of the days, at least the reported amount x is produced. Determine the value of the lower limit x.

Reference no: EM13982836

Questions Cloud

Certain securities over a given period : Weekly rates of return (on an annualized basis) for certain securities over a given period are believed to be normally distributed with mean 8.00% and variance 0.25. Give two values x1 and x2 such that you are 95% sure that annualized weekly return..

Do you agree with his critics that he was speculating : To what degree did he limit the upside and downside exposure of the transaction by hedging one half of it? Do you agree with his critics that he was speculating?

The government reduces tax rates : Using diagrams for aggregate expenditures (AE) and aggregate demand and supply (AD-AS), show the short- run effects the following event has on the Canadian economy. Be sure to identify the cause of any shift or movement along AE, AD, and/or AS and in..

Demand and supply of syndicated bank loans : In 1998, the Syndicated Bank Loan market (defined as loans having more than two bank lenders) was a vast and cheap source of debt financing for U.S. corporations. This market was characterized by a large number of financial institutions that aggressi..

Determine the value of the lower limit : In determining the amount of oil the company must report as its lower limit of daily production, the company wants to choose an amount such that for 80% of the days, at least the reported amount x is produced. Determine the value of the lower limit..

What are the annual end of year payments : What hourly charge should be included to pay off the computer, assuming 2,000 hours work per year, credited at the end of year?

Component that produces heat load : Which one of the following is not component that produces heat load and which one is not among the major components of KDEPrint that you should know about

Is it always true that structure causes the conduct : Is it always true that structure causes the conduct and thus performance of an industry? Is it possible for the reverse causation? Explain

Estimate the number of steps you would have to take to walk : Estimate the number of steps you would have to take to walk a distance equal to the circumference of the Earth. We estimate that the length of a step for an average person is about 18 inches.

User Account

All Pages