Statistics Question

Question

The Price of a bond is uniformly distributed between $80 and $90. 

 

a. What is the probability that the bond price will be greater than $83?

b. What is the probability that the bond price will be between $81 to $90?

c. Compute the probability that bond price equals $82.

d. Determine the expected price of the bond.

e. Compute the standard deviation for the bond price.

Answer 1

It will help you immensely to draw this.  Draw a horizontal lines with 11 equally spaced tick marks.  Label 80,81,82...89,90.   Sine the area of any distribution is 100% or 1.0, the height of the graph is 0.10

 

Now, to find the probabilities, just count the rectangles that fit the question .

 

A.  How many rectangles are greater than 83?  7?