Jerry has calculated the average cash flow to be $16,000 with a standard deviation of $4,000....
Homework Answers
The probability of the cash flows being less than $ 9000 can be found using the Z score for normal distribution.
Z = -1.75
Using the standard normal distribution table, the value that corresponds to a Z score of -1.75 equals 0.04006
The probability of a cash flow being less than $9,000 = 0.04006
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