Page 94 - FINAL CFA SLIDES DECEMBER 2018 DAY 3
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LOS 10.l: Define the standard normal
   distribution, explain how to standardize a                                  Session Unit 3:
                                                                               10. Common Probability Distributions (C/C/C)
   random variable, and calculate and

   interpret probabilities using the standard                      Calculating Probabilities Using z-Values
   normal distribution.





    Use the following data to answer Questions 16 through 18. A study of hedge fund

    investors found that their annual household incomes are normally distributed with a
    mean of $175,000 and a standard deviation of $25,000.







                                      C. z = (100 – 175) / 25 = –3, F(–3) = 1 – 0.9987 = 0.0013








                                      C. 1 – F(2), where F(2) equals 0.9772. Hence, 1 – 0.9772 = 0.0228.








                                      C. 84.13%
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