Question
In: Advanced Math
The selling prices of all stocks listed on the CDNX stock exchange are known to be...
The selling prices of all stocks listed on the CDNX stock exchange are known to be normally distributed with a mean of $20 and a standard deviation of $4. (a) What percentage of stocks have a selling price between $20 and $40? (b) If 167 of the stocks sell for $26 or higher, how many stocks sell on the CDNX exchange? (c) What is the minimum selling price of the most expensive 5% of stocks? (d) 2 out of every 3 stocks sells for higher than what price? (e) The prices of the middle 80% of stocks are between what two values?
Solutions
Expert Solution
a) 
Which is 
where 
is standard normal distribution
Looking up tables we find
so that 
and so
Probability is 
b) 
which comes out to be 
So total number of stocks is 
c) 
happens for 
is the required minimum selling price of most expensive 5%
stocks
d) 
means 
so that
so that 2 out of 3 stocks sell higher than 18.28
e) 
Where 
by symmetry
So 
is what we want
So that 
or in other words 
which corresponds to 
(after looking up standard normal table)
So that prices of middle 80% stocks fall between 
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Colby Messinger answered 2 years agoRelated Solutions
The accompanying data set provides the closing prices for four stocks and the stock exchange over...
The accompanying data set provides the closing prices for four
stocks and the stock exchange over 12 days:
Date
A
B
C
D
Stock Exchange
9/3/10
127.37
18.34
21.03
15.51
10432.45
9/7/10
127.15
18.18
20.44
15.51
10334.67
9/8/10
124.92
17.88
20.57
15.82
10468.41
9/9/10
127.35
17.95
20.52
16.02
10498.61
9/10/10
128.37
17.82
20.42
15.98
10563.84
9/13/10
128.36
18.64
21.16
16.21
10616.07
9/14/10
128.61
18.83
21.29
16.22
10565.83
9/15/10
130.17
18.79
21.69
16.25
10627.97
9/16/10
130.34
19.16
21.76
16.36
10595.39
9/17/10...
The accompanying data set provides the closing prices for four stocks and the stock exchange over...
The accompanying data set provides the closing prices for four
stocks and the stock exchange over 12 days:
Date
A
B
C
D
Stock Exchange
9/3/10
127.37
18.34
21.03
15.51
10432.45
9/7/10
127.15
18.18
20.44
15.51
10334.67
9/8/10
124.92
17.88
20.57
15.82
10468.41
9/9/10
127.35
17.95
20.52
16.02
10498.61
9/10/10
128.37
17.82
20.42
15.98
10563.84
9/13/10
128.36
18.64
21.16
16.21
10616.07
9/14/10
128.61
18.83
21.29
16.22
10565.83
9/15/10
130.17
18.79
21.69
16.25
10627.97
9/16/10
130.34
19.16
21.76
16.36
10595.39
9/17/10...
The accompanying data set provides the closing prices for four stocks and the stock exchange over...
The accompanying data set provides the closing prices for four
stocks and the stock exchange over 12 days:
Date
A
B
C
D
Stock Exchange
9/3/10
127.37
18.34
21.03
15.51
10432.45
9/7/10
127.15
18.18
20.44
15.51
10334.67
9/8/10
124.92
17.88
20.57
15.82
10468.41
9/9/10
127.35
17.95
20.52
16.02
10498.61
9/10/10
128.37
17.82
20.42
15.98
10563.84
9/13/10
128.36
18.64
21.16
16.21
10616.07
9/14/10
128.61
18.83
21.29
16.22
10565.83
9/15/10
130.17
18.79
21.69
16.25
10627.97
9/16/10
130.34
19.16
21.76
16.36
10595.39
9/17/10...
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