In a study of 100 common stocks, it was found that the annual dividend rates were normally distributed, with a mean of 4.0% and a standard deviation of 0.5%

About how many of these stocks paid more than 5%?

Question

In a study of 100 common stocks, it was found that the annual dividend rates were normally distributed, with a mean of 4.0% and a standard deviation of 0.5%

About how many of these stocks paid more than 5%?

anonymous · Answer

$$\frac{X-\mu}{\sigma}$$
$$\frac{5-4}{.5}=2$$

so you have a z score on the standard normal table of 2.  You can look up the probability of being higher than that in a cart.

anonymous · Answer

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