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Assume that the number of all ordinaries shares traded

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Question: The number of shares traded each day on the Australian Stock Exchange (ASX) is referred to as the volume of trade. During the 2007/08 financial year the average volume traded daily for the ASX All Ordinaries was 935 million with a standard deviation of 262 million.

Assume that the number of All Ordinaries shares traded daily on the ASX is a normal random variable with a mean of 935 million and a standard deviation of 262 million. For a randomly selected day, what is the probability that the volume of trading in these shares is:

(a) Below 500 million?

(b) Between 750 and 1,000 million?

(c) Below 1,500 million?

(d) Above 1,200 million?

(e) On 18 September 2008 the All Ordinaries volume of trade was 2.125 million. What is the probability that the volume of trading for the All Ordinaries on a randomly selected day is at least 2.125 million? What conclusions can you draw from this probability?

Reference no: EM13583755

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