Let X be a random variable representing a risk with E(X) = 10 and E(X) = 125. %3D A portfolio contains 25 independent risks, each with a distribution of the random variable X. Approximate the probability that the sum of the risks exceeds 258 using the central limit theorem.

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.7: Probability
Problem 39E: Assume that the probability that an airplane engine will fail during a torture test is 12and that...
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Let X be a random variable representing a risk with E(X) = 10 and E(X2) = 125.
A portfolio contains 25 independent risks, each with a distribution of the random
variable X. Approximate the probability that the sum of the risks exceeds 258 using the
%3D
central limit theorem.
Transcribed Image Text:Let X be a random variable representing a risk with E(X) = 10 and E(X2) = 125. A portfolio contains 25 independent risks, each with a distribution of the random variable X. Approximate the probability that the sum of the risks exceeds 258 using the %3D central limit theorem.
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