The daily exchange rate of one dollar in euros during the first three months of 2007 can be inferred to have the following distribution.
|
x
|
P(x)
|
|
0.73
|
0.05
|
|
0.74
|
0.10
|
|
0.75
|
0.25
|
|
0.76
|
0.40
|
|
0.77
|
0.15
|
|
0.78
|
0.05
|
a. Show that P (x) is a probability distribution.
b. What is the probability that the exchange rate on a given day during this period will be at least 0.75?
c. What is the probability that the exchange rate on a given day during this period will be less than 0.77?
d. If daily exchange rates are independent of one another, what is the probability that for two days in a row the exchange rate will be above 0.75?