Question

xThe closing price of Schnur Sporting Goods Inc. common stock is uniformly distributed between $18 and $28 per share. What is the probability that the stock price will be: More than $20? (Round your answer to 4 decimal places.)

Answer 1

The probability is
`P(X > 20 ) = 0.8`

Explanation:

From the question we are told that

The closing price of Schnur Sporting Goods Inc. common stock is uniformly distributed between $18 and $28 per share.

Given that the stock is uniformly distributed then the probability that the stock price will be more than $20 is mathematically evaluated as

`P(X > 20 ) = 1 - P(X < 20 )`

Since it is uniformly distribute between $18 and $28 per share then we can solve is as follows

=>
`P(X > 20 ) = 1 - [( 20 - 18 )/(28 -18) ]`

=>
`P(X > 20 ) = 0.8`