Discussion For each of the following uncertain quantities, discuss whether it is reasonable to assume that...

Discussion	For each of the following uncertain quantities, discuss whether it is reasonable to assume that the probability distribution of the quantity is normal. If the answer isn’t obvious, discuss how you could discover whether a normal distribution is reasonable. (a) The change in the Dow Jones Industrial Average between now and a year from now. (b) Your bonus from finishing a project, where your bonus is $1000 per day under the deadline if the project is completed before the deadline, your bonus is $500 if the project is completed right on the deadline, and your bonus is $0 if the project is completed after the deadline. Explain reasoning. (c) The time between two successive arrivals to a bank. (d) The time it takes a bank teller to serve a random customer.

Discussion

For each of the following uncertain quantities, discuss whether it is reasonable to assume that the probability distribution of the quantity is normal. If the answer isn’t obvious, discuss how you could discover whether a normal distribution is reasonable. (a) The change in the Dow Jones Industrial Average between now and a year from now. (b) Your bonus from finishing a project, where your bonus is $1000 per day under the deadline if the project is completed before the deadline, your bonus is $500 if the project is completed right on the deadline, and your bonus is $0 if the project is completed after the deadline. Explain reasoning. (c) The time between two successive arrivals to a bank. (d) The time it takes a bank teller to serve a random customer.

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orchestra answered 1 year ago

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