3. A distinguishing characteristic of entrepreneurs is theirwillingness to take risks. R.H.Brockhaus (Academy of ManagementJournal, Sept. 1980) used a choice dilemma questionaire (CDQ) tomeasure the risk-taking propensities of successful entrepreneurs(lower scores associated with a higher tendency for risk taking).The CDQ scores are normally distributed with a mean of 72 and astandard deviation of 8.
(a) What is the probability that a randomly selectedentrepreneur will score between 68 and 74 on the CDQ? Final answerin 4 decimals.
(b) What CDQ score differentiates the 30.5% entrepreneurs mostwilling to take risks from the rest
(c) Suppose a random sample of 5 entrepreneurs are selected,what is the likelihood that the average CDQ score of these 5entrepreneurs is between 70 and 72? Use the standard normal tableand express your final answer in 4 decimals.
