Answer:
P=93.32%
Explanation:
Calculation for the probability of a cash flow
Mean =μ=$16,000
Standard Deviation =σ=$2,500
P(x > $12,250) = 1 - P(x <$12,250 )
= 1 - P(z < x - μ ) / σ =1 - P ( z < $12,250- $16,000) / $2,500)
P(x > $12,250) = 1 - P(z <$3,750/$2,500 )
P(x > $12,250) = 1 - P(z <$1.5 )
P=1-0.0668
P=0.9332*100
P=93.32%
Therefore the probability of a cash flow being greater than $12,250 is 93.32%
