Question

Financial analysts who make forecasts of stock prices are categorized as either​ "buy-side" analysts or​ "sell-side"...

Financial analysts who make forecasts of stock prices are categorized as either​ "buy-side" analysts or​ "sell-side" analysts. The mean and standard deviation of the forecast errors for both types of analysts are shown in the table to the right. Assume that the distribution of forecast errors are approximately normally distributed.

​Buy-Side Analysts

​Sell-Side Analysts

Mean

0.84

−0.04

Standard Deviation

1.95

0.85

a. Find the probability that a​ buy-side analyst has a forecast error of ​+2.00 or higher.

b. Find the probability that a​ sell-side analyst has a forecast error of ​+2.00 or higher.

a. The probability that a​ buy-side analyst has a forecast error of

​+2.00 or higher is ​(Round to three decimal places as​ needed.)

b. The probability that a​ sell-side analyst has a forecast error of

​+2.00 or higher is (Round to three decimal places as​ needed.)

Enter your answer in each of the answer boxes.

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