One Classic Use of the Normal Distribution Is Inspired by a Letter

question 140

Multiple Choice

One classic use of the normal distribution is inspired by a letter to Dear Abbey in which a wife
Claimed to have given birth 308 days after a brief visit from her husband, who was serving in the
Navy. The lengths of pregnancies are normally distributed with a mean of 268 days and a standard
Deviation of 15 days. Given this information.
(i. the probability of a pregnancy lasting 300 days or longer is 0.0166.
(ii. The result suggests that the husband is the father of the child.

• A) (i) and (ii) are correct statements.
• B) (i) is a correct statement but not (ii).
• C) (ii) is a correct statement but not (i).
• D) (i) and (ii) are false statements.

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Definitions:

Prospectus

A formal document that provides details about an investment offering for sale to the public.

Management Fee

A charge paid to investment managers for their services, typically a percentage of the assets under management.

Assets

Economic resources owned or controlled by an individual or entity, capable of producing value.

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, usually expressed per share.