You are analyzing the revenues of 3 IT companies (MBI, Letni and PH) over a period of 25 years. You find that the annual revenues of these companies have Normal Distributions. Interestingly, the average annual revenue is equal $6B for each of the three companies. However, the standard deviation of the annual revenue of MBI, Letni and PH is 1.2, 0.8 and 0.9, respectively. Match the shape of the Normal Distribution Curve of revenue with associated companies!
1. Steepest:
a. PH
b. Letni
C. MBI
D. It cannot be determined from the given information
2. Flattest
a. PH
b. Letni
C. MBI
D. It cannot be determined from the given information
Concept
In this problem
MBI: Mean = 6, SD = 1.2
PH: Mean = 6, SD = 0.9
Letni: Mean = 6, SD = 0.8
1. So, the standard deviation is least in Letni, so Steepest curve is Letni, Option B
2. For the Flat curve, when the data is spread apart, meaning standard deviation is high, the curve is flat. So the curve of MBI is flattest, Option C
We can also plot the curves and verify. I have plotted the curves for these three values. PFB the curves
For MBI
For PH
For Letni
So from the curves also it is clear that MBI has the flattest and Letni has the steepest
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