A $1,000 face value bond is currently quoted at 100.8. the bond pays semiannual payments of $22.50 each and matures in six years
1 answer:
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Answer:
Option D) 7.90 g and 8.12 g
Step-by-step explanation:
We are given the following information in the question:
Mean, μ = 8.01 g
Standard Deviation, σ = 0.06 g
We are given that the distribution of weights is a bell shaped distribution that is a normal distribution.
Formula:
We have to find the value of x such that the probability is 0.03
P(X > x)
Calculation the value from standard normal z table, we have,
Thus, 8.17 g separates the top 3% of the weights.
P(X < x)
Calculation the value from standard normal z table, we have,
Thus, 7.90 separates the bottom 3% of the weights.
Thus, the correct answer is
Option D) 7.90 g and 8.12 g