The number of shares of a stock traded during a day for a firm is approximated by a random variable that is normally distributed with mean 3192 and standard deviation 1181. Calculate the pdf value at x=3200.

Q: The number of shares of a stock traded during a day for a firm is approximated by a random variable that is normally distributed with mean 3192 and standard deviation 1181. Calculate the pdf value at x=3200.

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Q: A normally distributed random variable with a mean of 3192 and a standard deviation of 1181 approximates the number of shares of a firm’s stock that are exchanged in a given day. Determine the value of the pdf at x=3200.

• 0.9997
• 0.202
• 0.0003
• 0.801
• 0.003
• 0.502

Explanation: The closest answer is 0.0003. The pdf value indicates how likely it is to observe exactly $3200$ shares traded on a given day, given the normal distribution of shares traded around the mean of $3192$. Since this value is quite low, it suggests that trading exactly $3200$ shares is relatively rare compared to the distribution of shares traded over many days.