What is the probability that on a particular day, the trading volume will be less than 2.5 billion? Will be more than 9 billion? Will be between 4 to 6 billion? You make decision to trade on a day when the trading is active on the previous day. You consider the trading is active if the volume exceeds 8 billion. What is the probability that you will trade for two consecutive days? What is the assumption that you make to arrive at the answer.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 2GP
icon
Related questions
Question
The daily trading volumes for stocks traded on Bursa Malaysia for recent 12 years
are known to be normally distributed with mean 5 billion and standard deviation
= 1.8 billion.
i)
What is the probability that on a particular day, the trading volume will be
less than 2.5 billion? Will be more than 9 billion? Will be between 4 to 6
billion?
ii)
You make decision to trade on a day when the trading is active on the
previous day. You consider the trading is active if the volume exceeds 8
billion. What is the probability that you will trade for two consecutive days?
What is the assumption that you make to arrive at the answer.
Transcribed Image Text:The daily trading volumes for stocks traded on Bursa Malaysia for recent 12 years are known to be normally distributed with mean 5 billion and standard deviation = 1.8 billion. i) What is the probability that on a particular day, the trading volume will be less than 2.5 billion? Will be more than 9 billion? Will be between 4 to 6 billion? ii) You make decision to trade on a day when the trading is active on the previous day. You consider the trading is active if the volume exceeds 8 billion. What is the probability that you will trade for two consecutive days? What is the assumption that you make to arrive at the answer.
Expert Solution
steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,