A discount brokerage firm states that the time between a customer order for a trade and the execution of the order is uniformly distributed between three minutes and fifteen minutes. If a customer orders a trade at 11:54 A.M., what is the probability that the order is executed after noon? A) 0.750. B) 0.500. C) 0.125. D) 0.250. Can someone pls show me how to calculate this probability
The range is 3 - 15 minutes (a difference of 12 minutes) and the odds of it being executed in less than 6 minutes (12:00PM minus 11:54AM) is 3/12 or .250 so the odds of it being more is .750. i think… Is it A?
question asks AFTER noon so 6/12 0.5 Choice B?
it does say afternoon, but the first possible time is 3 minutes later so i agree with broken the last time a trade can be executed is 1209 so 9 times are afternoon or 9/12 = 75%
12- 11.54/15-3=.5 answer is B
but the first trade can’t happen at 1154, it can only happen at 1157, as it says it takes at least 3 minutes to do a trade and can take 15 minutes
Answer is B. Go with CP and ssndola
Between 3 and 15 minutes @@ To me there is no answer. 15-3 +1 = 13 Each probabiliby is 1/13 After NOON = from 7 minutes onwards = 9/13. No?
In my opinion 0.75 is the right answer. The earliest time the order can be executed is 11.57 the latest is 12.09 so the range is 12 minutes and only 9 minutes satisfy the condition that the delivery is in the afternoon. 9/12 =0.75 so answer A is correct!!
Those of you that are choosing B are forgetting to add the 3 minute delay it takes to process the order onto 11:54. Taking the 3 minute delay into consideration makes the correct answer A.
I vote for A. t is uniformly distributed between [3,15]. the probability of t being greater than 6 is (15-6)/(15-3) = 0.75
I vote b. t is uniformly distributed (3,15). uniform distribution = 1/[15-3] =1/12. probability of it being at 11:57 = 3/12 = .20 probability of it being at 1200 =6/12 = .50
Correct Answer is A. I realized my mistake: For continuous dist: CDF = X-A/B-A = 6-3/15-3 = .25 (This gives us probability of X being less than or equal to 6) So probability of X > 6 is 1 - .25 = .75…