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Statistics- Normal Distribution Question

mattaj

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Joined
Nov 11, 2009
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2
If there is no change in interest rate, the profit on a stock after 1 year has normal distribution with mean 500 and standard deviation 100. However, if interest rates are raised in this period, then the profit from investment is normally distributed with a mean 300 and a standard deviation of 80.
If there is 30% chance of interest rate to be raised and a 70% chance of remaining unchanged, find the probability, that the profit exceeds 400.


Hi - im really stuck with this question- i understand how to solve normal distributions but im unsure of how to go about finding the answer to this question.
 

mattaj

New member
Joined
Nov 11, 2009
Messages
2
is this definately the way to do it?
 
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