1 Your broker calls you with information about an investment

1. Your broker calls you with information about an investment opportunity. He informs you that the net profits from this investment are normally distributed and on average the net profit is $10,000. He urges you to make the investment since the standard deviation of the profits is $5,000. Based on this information, what is the probability that you will at least break even on the investment and not suffer a loss?

Mean = 10000

Standard deviation SD =5000

z = (10000) / 5000 = 2

Probability = 0.9772 Answer

1. Your broker calls you with information about an investment opportunity. He informs you that the net profits from this investment are normally distributed and

1 Your broker calls you with information about an investment

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