Final answer:
The 20th percentile of a stock that varies uniformly between $14 to $25 is found by calculating 20% of the range (which is $11) and adding it to the minimum value. The computation results in a 20th percentile of $16.20.
Step-by-step explanation:
The student is asking about finding the 20th percentile of a stock's value when it varies uniformly from $14 to $25. To calculate this, we need to understand that the 20th percentile is a value below which 20% of the data lies. Since the distribution is uniform, the values are equally spaced out between the minimum and maximum values.
The range of the stock values is $25 - $14 = $11. Since we are looking for the 20th percentile, we calculate 20% of the range and add it to the minimum value. This gives us:
20% of $11 = 0.20 × $11 = $2.20
Adding this to the minimum stock value:
$14 + $2.20 = $16.20
Therefore, the 20th percentile of the stock's value is $16.20.