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Question: Rivets. A company that manufactures rivets believes the shear strength (in pounds) is modeled by N(800, 50).
a) Draw and label the Normal model.
b) Would it be safe to use these rivets in a situation requiring a shear strength of 750 pounds? Explain.
c) About what percent of these rivets would you expect to fall below 900 pounds?
d) Rivets are used in a variety of applications with varying shear strength requirements. What is the maximum shear strength for which you would feel comfortable approving this company's rivets? Explain your reasoning.
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You're considering investing in a portfolio of the common stocks of four publicly-traded companies with betas as follows:
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