The daily exchange rate for currencies fluctuates on a dailybasis due to many economic conditions affecting the business cycle.The exchange rate for a twelve month period in the year 2004between the US dollar and the EURO shows an approximately normallydistributed behavior with a mean exchange rate of 0.804 euros forevery dollar and a standard deviation of 0.0255.
Find the following:
A) The probability that the exchange rate between the pair ofcurrencies between 0.798 and 0.8100.
B) The probability that the exchange rate will be larger than0.845 euros for every dollar.
C) The exchange rate such that 98% of the data falls belowit.
D) If the standard deviation is changed from the stated value to0.03, what will the answers in (A) through (C) be.
