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An analyst is forecasting net income for Excellence Corporation for the next fiscal year. Her low-end estimate of net income is $250,000, and her high-end estimate is $350,000. Prior research allows her to assume that net income follows a continuous uniform distribution. The probability that net income will be greater than or equal to $337,500 is

Answer :

Answer:

[tex]P(X \geq 337,500) = 0.125 = 12.5%[/tex]

Step-by-step explanation:

probability distribution fucntion is given as

[tex] F_x = P(X \leq x)[/tex]

       [tex] = \frac{x -a}{b -a}      a<x< b[/tex]

where a indicate lower end estimate = $250,000

b indicate high end estimate = $350,000

probability greater than $337500

[tex] P(X \geq 337,500) = 1- P(X < 337500)[/tex]

                               [tex] = 1 - \frac{x -a}{b -a}[/tex]

                               [tex] = 1 - \frac{337500 - 250000}{350000 - 250000}[/tex]

[tex]P(X \geq 337,500) = 0.125 = 12.5%[/tex]

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