Solve the Problem. -Suppose That Replacement Times for Washing Machines Are Normally Distributed

question 80

Multiple Choice

Solve the problem.
-Suppose that replacement times for washing machines are normally distributed with a mean of 9.3 years and a standard deviation of 1.1 years. Find the probability that 70 randomly selected washing machines will have a
Mean replacement time less than 9.1 years.

• A) 0.0643
• B) 0.0714
• C) 0.4357
• D) 0.4286

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Definitions:

Corporate Bonds

Debt securities issued by corporations to finance their operations, expansions, or projects, which pay fixed or variable interest rates to investors.

Yield To Maturity

A measure of the annualized return anticipated on a bond if the bond is held until its maturity date, accounting for current market price, par value, coupon interest rate, and time to maturity.

Par Value

A nominal value assigned to a security or company stock, serving as the minimum price at which the security can initially be sold.

Coupon Payment

Dollar amount of interest paid to each bondholder on the interest payment dates.