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Q. The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launching services to commercial firms. Her most optimistic estimate (a price not expected to be exceeded more than 10 percent of the time) is 2 million. Her most pessimistic estimate (a lower price than this one is not expected more than 10 percent of the time) is 1 million. 1.5 million Expected value estimated. The price distribution is believed to be approximately normal.
Explain what is the expected price?
Explain what is the STD dev of the launch price?
Explain what is the probability of receiving a price less than 1.2 million?
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