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An insurance company’s annual profit is normally distributed with mean 100 and variance 400. Let Z...

An insurance company’s annual profit is normally distributed with mean 100 and variance 400. Let Z be normally distributed with mean 0 and variance 1 and let F be the cumulative distribution function of Z.

Determine the probability that the company’s profit in a year is at most 60, given that the profit in the year is positive.

(A) 1 – F(2)

(B) F(2)/F(5)

(C) [1 – F(2)]/F(5)

(D) [F(0.25) – F(0.1)]/F(0.25)

(E) [F(5) – F(2)]/F(5)  

Math   Statistics-And-Probability   
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