You Were Told That the Amount of Time Lapsed Between

question 64

Short Answer

You were told that the amount of time lapsed between consecutive trades on the New York Stock Exchange followed a normal distribution with a mean of 15 seconds. You were also told that the probability that the time lapsed between two consecutive trades to fall between 16 to 17 seconds was 13%. The probability that the time lapsed between two consecutive trades would fall below 13 seconds was 7%. What is the probability that the time lapsed between two consecutive trades will be between 15 and 16 seconds?

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Definitions:

Linear Relationship

Relationship between variables appropriately represented by a straight line.

Yerkes-Dodson Law

A theory suggesting that there is an optimal level of arousal for the best performance on any task; too little or too much arousal can impair performance.

Arousal

A physiological and psychological state of being awake or reactive to stimuli.

Inferential

Inferential statistics involve techniques that allow conclusions to extend from a sample to a population, based on probability.