Page 53 - FINAL CFA I SLIDES JUNE 2019 DAY 3
P. 53
LOS 10.l: Define the standard normal distribution, Session Unit 3:
explain how to standardize a random variable, and
calculate and interpret probabilities using the 10. Common Probability Distributions
standard normal distribution.
Calculating Probabilities Using z-Values, p228
Example: Using the z-table (1): Considering again EPS distributed with μ = $6 and σ = $2, what is the p (EPS) = $9.70
or more? Be careful CI –is within, this is outside!
Lets look for 1.85 on Z table!