Question

The price-earnings (PE) ratios of a sample of stocks have a mean value of 12.5 and a standard deviation of 2.4. If the PE ratios have a bell shaped distribution, what percentage of PE ratios that fall between: A. 10.1 and 14.9. Percentage = % B. 7.7 and 17.3. Percentage = % C. 5.3 and 19.7. Percentage = %

Answer 1

This is a normal distribution question with


a)
P(10.1 < x < 14.9)=?

This implies that


b)
P(7.7 < x < 17.3)=?

This implies that

c)
P(5.3 < x < 19.7)=?

This implies that

PS: you have to refer z score table to find the final probabilities.

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