SCENARIO 6-2 John Has Two Jobs.For Daytime Work at a Jewelry Store

question 105

Short Answer

SCENARIO 6-2
John has two jobs.For daytime work at a jewelry store he is paid $15,000 per month,plus a commission.His monthly commission is normally distributed with mean $10,000 and standard deviation $2000.At night he works occasionally as a waiter,for which his monthly income is normally distributed with mean $1,000 and standard deviation $300.John's income levels from these two sources are independent of each other.
-Referring to Scenario 6-2,for a given month,what is the probability that John's income as a waiter is at least $1400?

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Definitions:

Investor

refers to an individual or entity that allocates capital with the expectation of receiving financial returns.

Risk

The exposure to uncertainty or the potential for financial loss and variability in investment returns.

Probability

A measure of the likelihood of a certain event or outcome, typically expressed as a number between 0 and 1.

Disproportionately Large Weight

An undue or excessively large significance or importance given to a component or factor in a situation or calculation.