A company is interested in investing in companies in Hong Kong. They have access to a large data set on the rate of return on assets (expressed as a percentage) for a large number of companies operating in Hong Kong and have noticed that the data are normally distributed with mean = 9 and Standard deviation = 21
Explain how the company could use the information above to assess the probability of a company having a rate of return above or below a given figure.
More generally, if the desired rate of return is x, calculate the "standard variable" and look up the probability in a table of the standard normal distribution. A good one is at Standard Normal Table.