Question: A private equity firm is evaluating investments. They consider the returns to be random, but normally distributed. One of the investments has a mean return of $2 million and standard deviation of $125,000.

1. What is the probability that the return will be less than $1,900,000?
2. What is the probability that the return will be more than $2,300,000?
3. What is the probability that it will be between $2.1 and $2.3 million?
4. A second investment the firm is considering has a higher average return $2,275,000, with = $500,000. Would the firm be better-off putting their funds into this investment than the one with the average $2 million return?

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