Probability that project will achieve at least that level

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Reference no: EM131049006

Hy-tec Communication has calculated the return on assets (ROA) for one of its projects using a simulation method. By simulating the operations 1,000 times, they obtained an ROA of 16.7 percent and a standard deviation of 6.2. The results of the simulation conform quite closely to a normal curve.

A) Draw a probability distribution using the given data.

B) The Company’s objective is to achieve an ROA of 12%. What is the probability that the project will achieve at least that level?

Reference no: EM131049006

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