Show that given is a probability distribution

Reference no: EM131370039

The daily exchange rate of one dollar in euros during the first three months of 2007 can be inferred to have the following distribution.

x	P(x)
0.73	0.05
0.74	0.10
0.75	0.25
0.76	0.40
0.77	0.15
0.78	0.05

a. Show that P (x) is a probability distribution.

b. What is the probability that the exchange rate on a given day during this period will be at least 0.75?

c. What is the probability that the exchange rate on a given day during this period will be less than 0.77?

d. If daily exchange rates are independent of one another, what is the probability that for two days in a row the exchange rate will be above 0.75?

Reference no: EM131370039

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