Exhibit 6-7 -The Price of a Bond Is Uniformly Distributed Between $80

question 117

Short Answer

Exhibit 6-7
-The price of a bond is uniformly distributed between $80 and $85.
a.What is the probability that the bond price will be at least $83?
b.What is the probability that the bond price will be between $81 and $90?
c.Determine the expected price of the bond.
d.Compute the standard deviation for the bond price.

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Definitions:

Beyond A Reasonable Doubt

The standard of evidence required to convict a person in a criminal trial, indicating that there is no logical explanation other than the defendant's guilt.

Fifth Amendment

an amendment to the U.S. Constitution that provides several protections to individuals, including the right against self-incrimination and double jeopardy.

Indigent Defendants

Defendants in a legal proceeding who lack the financial resources to pay for their own defense and may be entitled to receive legal representation at the expense of the government.

Court-Appointed Counsel

Lawyers provided by the court for defendants who cannot afford to hire an attorney themselves.