Question

Suppose that the value of a stock varies each day from $12.82 to $28.17 with a uniform distribution.

Find the third quartile; 75% of all days the stock is below what value? (Enter your answer to the nearest cent.)

Answer 1

Answer: 24.33

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Step-by-step explanation:

The range is

range = max - min

range = 28.17 - 12.82

range = 15.35

This is the width of this particular uniform distribution.

Apply 75% to this value

75% of 15.35 = 0.75*15.35 = 11.5125

Then finally, add that to the min

12.82 + 11.5125 = 24.3325 which rounds to 24.33

We can see that 75% of the values are below 24.33 which makes it the 3rd quartile (Q3).