The price-earnings ratios of a sample of stocks have a mean value of 13.5 and a standard deviation of 2. If the ratios have a bell-shaped distribution, what can be said about the proportion of ratios that fall between 11.5 and 15.5

Respuesta :

Answer:

[tex]P(11.5<X<15.5)=P(\frac{11.5-\mu}{\sigma}<\frac{X-\mu}{\sigma}<\frac{13.5-\mu}{\sigma})=P(\frac{11.5-13.5}{2}<Z<\frac{15.5-13.5}{2})=P(-1<z<1)[/tex]

And we can find the probability with this difference

[tex]P(-1<z<1)=P(z<1)-P(z<-1)[/tex]

And we can use the normal standard distribution or excel and we got:

[tex]P(-1<z<1)=P(z<1)-P(z<-1)=0.841-0.159=0.682[/tex]

So then we expect a proportion of 0.682 between 11.5 and 13.5

Step-by-step explanation:

Let X the random variable that represent the price earning ratios of a population, and for this case we know the distribution for X is given by:

[tex]X \sim N(13.5,2)[/tex]  

Where [tex]\mu=13.5[/tex] and [tex]\sigma=2[/tex]

We want to find the following probability

[tex]P(11.5<X<15.5)[/tex]

And we can use the z score formula given by:

[tex]z=\frac{x-\mu}{\sigma}[/tex]

Using this formula we got:

[tex]P(11.5<X<15.5)=P(\frac{11.5-\mu}{\sigma}<\frac{X-\mu}{\sigma}<\frac{13.5-\mu}{\sigma})=P(\frac{11.5-13.5}{2}<Z<\frac{15.5-13.5}{2})=P(-1<z<1)[/tex]

And we can find the probability with this difference

[tex]P(-1<z<1)=P(z<1)-P(z<-1)[/tex]

And we can use the normal standard distribution or excel and we got:

[tex]P(-1<z<1)=P(z<1)-P(z<-1)=0.841-0.159=0.682[/tex]

So then we expect a proportion of 0.682 between 11.5 and 13.5