Question

The price of a stock is uniformly distributed between $30 and $40. What is the probability that the stock price will be more than $377

Answer 1

The probability is 0.

Step-by-step explanation:

To find the probability that the stock price will be more than $377, we need to first find the range of the uniform distribution. The given information states that the price of the stock is uniformly distributed between $30 and $40. Since the stock price cannot exceed $40, the probability of it being more than $377 would be 0.

Answer 2

To find the probability that the stock price will be more than $377, we need to calculate the proportion of the distribution that falls above this threshold. The price of the stock is uniformly distributed between $30 and $40. Since the distribution is uniform, the probability of any specific value occurring within this range is equal to 1 divided by the range of the distribution, which is 40 - 30 = $10. The probability that the stock price will be more than $377 is $347 / $10 = 34.7%.

Step-by-step explanation:

To find the probability that the stock price will be more than $377, we need to calculate the proportion of the distribution that falls above this threshold.

The price of the stock is uniformly distributed between $30 and $40. Since the distribution is uniform, the probability of any specific value occurring within this range is equal to 1 divided by the range of the distribution, which is 40 - 30 = $10.

Since we are interested in the probability that the stock price will be more than $377, we need to find the proportion of the distribution that falls above this value. This can be calculated by subtracting the lower limit of the distribution from $377 and dividing by the range of the distribution:

Probability = ($377 - $30) / $10 = $347 / $10 = 34.7%