The net profit from a certain investment is normally distributed with a mean of $2,500 and a standard deviation of $1,000.. The probability that the investor's net gain will be at least $2,000 is _____________.
A) 0.0000
B) 0.3413
C) 0.0005
D) 0.0500
E) 0.5000

Question

Quizplus · Accepted Answer

The Z-score for $2,000 is (2000-2500)/1000 = -0.5. The probability of a Z-score greater than -0.5 is 0.6915. Since the normal distribution is symmetric, the probability of a net gain of at least $2,000 is 0.6915, which is closest to 0.5000 among the given options.

The Net Profit from a Certain Investment Is Normally Distributed