The closing price of Schnur Sporting Goods Incv. common stock is uniformly distributed between $20 and $30 per share. Draw the uniform distribution. What are the height and base?
The base would be between $20 and $30, and the height would be he number of shares.
To draw the uniform distribution, you first need to determine the height (probability density) and base (range of values) for the distribution.
In this case, we know that the closing price of Schnur Sporting Goods Incv. common stock is uniformly distributed between $20 and $30 per share.
The base of the distribution represents the range of values, which is given as $20 to $30 per share. So, the base is 30 - 20 = $10.
Now, to find the height of the distribution, we need to consider that the total area under the distribution curve should equal 1, as this is a probability density function.
Since this is a uniform distribution, the probability density is constant across the range. Therefore, the height of the distribution is 1 divided by the base.
Height = 1 / Base
Height = 1 / $10
So, the height of the uniform distribution for the closing price of Schnur Sporting Goods Incv. common stock is 1/10.
To draw the distribution, you can create a rectangle where the base is $10 and the height is 1/10.