Subject: Business / Finance
At the end of 2015, a bank reported equity of about $7 Million on its balance sheet. Based on your analysis, you believe that
its profit next year will be normally distributed with a mean of $3 Million and a standard deviation of $5 Million. How confident should the bank be about ending the year with a positive equity?(table on next page)
If the bank wants to be 99.5% confident about ending the year with a positive equity, how much more equity should it hold?