Question: People seek security. A sense of security may be the next basic goal after food, clothing, and shelter. An individual with economic security is fairly certain that he can satisfy his needs (food, shelter, medical care, and so on) in the present and in the future. Economic risk is the possibility of losing economic security. Most economic risk derives from variation from the expected outcome. One measure economic of risk is the standard deviation. As an example, consider the cost of repair of a damaged where the damage occurred as a result of car accident. Let us consider the cost of repair of Porsche and a Toyota. In the event of an accident, the expected value of repairs for both cars is 2500. However, the standard deviation of repairs for the Porsche is 1000 and the standard deviation for the Toyota is 400. Assume the cost of repairs is normally distributed.

Calculate the following probabilities:

a. What is the probability that the repairs for the Porsche will cost more than 2500?

b. What is the probability that the repairs for the Toyota will cost more than 2500?

c. What is the probability that the repairs for the Porsche will cost more than 3000?

d. What is the probability that the repairs for the Toyota will cost more than 3000?