Trading volume on the New York Stock exchange is heaviest during the first half

Question

Trading volume on the New York Stock exchange is heaviest during the first half hour and last half hour of the trading day. The early morning trading volume (millions of shares) for 13 days in January and February are shown in the table below.

214 163 265 194 180 202 198 212 201 174 171 211 211 The computed sample's mean 200 =x , and the sample standard deviation 04 .26ˆ =
. The
probability distribution of trading volume is approximately normal.

a. What is the probability that, on a randomly selected day, the early morning trading volume will be less than 180 million shares?

Explanation / Answer

ANSWER:

Mean = 200

std = 26.04

x = 180

z score = (x - mean ) / std

z score = (180 - 200) / 26.04

z score = -20 / 26.04

z score = -0.7680

p value in the table for -0.768 is 0.2286

0.2286 is the probability

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