I am struggling to solve this question, i hope you will help me out on it.its on probability.
The returns from a project are normally distributed with a mean of $220 000 and a standard deviation of $160 000.If the project loses more than $80 000 the company will be in financial difficulties.
What is the probability of the project losing more than $80 000?
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General ACCAcima p1 Probability question
11y ago#1To have a loss of 80,000 means that they are 300,000 away from the average profit of 220,000.
300,000 is equivalent to 300,000/160,000 = 1.875 standard deviations.
If you look up in the tables for 1.875 std deviations you will then have the probability.
thanks for the help.
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