Assignment:
Under the system of floating exchange rates, the rate of foreign money to the U.S. dollar is affected by many random factors, and this leads to the assumption of a normal distribution of small daily fluctuations. The rate of U.S. dollar per euro is believed in April 2007 to have a mean of 1.36 and a standard deviation of 0.03. Find the following.
a. The probability that tomorrow’s rate will be above 1.42.
b. The probability that tomorrow’s rate will be below 1.35.
c. The probability that tomorrow’s exchange rate will be between 1.16 and 1.23.
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.