Math Problem Statement

A consensus forecast is the average of a large number of individual analysts' forecasts. Suppose the individual forecasts for a particular interest rate are normally distributed with a mean of 3 percent and a standard deviation of 2.0 percent. A single analyst is randomly selected. Find the probability that his/her forecast is

(a) At least 3.9 percent. (Round the z value to 2 decimal places. Round your answer to 4 decimal places.)

Solution

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Math Problem Analysis

Mathematical Concepts

Probability
Normal Distribution
Z-Scores

Formulas

z = (x - μ) / σ

Theorems

Empirical Rule of Normal Distribution

Suitable Grade Level

Grades 10-12