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Suppose that the value of a stock varies each day from $9.82 to $24.17 with a uniform distribution.

Find the upper quartile; 25% of all days the stock is above what value? (Enter your answer to the nearest
cent.)

Suppose that the value of a stock varies each day from $9.82 to $24.17 with a uniform-example-1

1 Answer

1 vote

The upper quartile is $20.58, and 25% of all days the stock is above $13.41.

To solve this problem

We take 75% of the range (because the upper quartile corresponds to the 75th percentile).

Let calculate it: $9.82 + ($24.17 - $9.82) * 0.75.

Simplify: $9.82 + $14.35 * 0.75.

Therefore. The upper quartile is $20.5825, but round it to the nearest cent: $20.58.

To find the value above which 25% of all days the stock is, we calculate the 25th percentile.

Use the formula: $9.82 + ($24.17 - $9.82) * 0.25.

Simplify: $9.82 + $14.35 * 0.25.

So, The result is $13.4075, but round it to the nearest cent: $13.41.

Therefore, the upper quartile is $20.58, and 25% of all days the stock is above $13.41.