Page 197 - DMGT405_FINANCIAL%20MANAGEMENT

Unit 9: Capital Budgeting

10% below mean, and 10% above mean: Notes

20,885– 23206
Z =  –0.248
9342
According to Table Z, the probability comes to 0.0979 i.e., 9.79% similarly for 10% above mean
it comes to 9.79%.
Between the Range of 15000 and 25000

Cumulative
Probability
Distribution

1
15000 23206 25000
Outcomes

15000 – 23206
Z =  – 0.878
1 9342
25000 – 23206
Z =  – 0.192
2 9342
According to Table Z, the probability corresponding to the respective values of Z1 and Z2 are
0.3100 and 0.0761. Summing up the values we have 0.3861 i.e., 38.61%.
Between the Range of 10000 and 20000

Cumulative
Probability
Distribution

10000 20000 23206
Outcomes

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