Reference no: EM132401494

A. The Local Town Council (LTC) is concerned about the performance of Small and Medium Enterprises (SMEs) in Selangor.  Lately, the performance of SMEs is badly affected due to economic downturn. The LTC is planning to provide financial support programs for the SMEs. Assume that SMEs profit is normally distributed with a mean of RM11,200 per month and a standard deviation of RM8,250 per month.

i) What is the probability that there will be a loss incurred by SMEs?

ii) What is the probability that the profit of this SMEs will be between RM10,000 and RM20,000 per month?

iii) Find the value of x (in RM per month), if 25% of the SME's profits are above x.

iv) Explain the standard deviation of the SME's profit in terms of the risk on investment.

B. The Local Town Council (LTC) were also concerned about the performance of Micro Level Business (MLB) in Selangor and randomly chose a sample of 36 firms and found the average profit to be RM5000 per month with a standard deviation of RM1500 per month.

i) Determine the 95% confidence interval estimate of population mean profit per month for the performance of MLB.