CFA Practice Question

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CFA Practice Question

What is the probability that a value of 30 or more will be observed from a normal distribution with a mean of 15 and standard deviation of 25?
A. 50%
B. 27.4%
C. 60%
Explanation: We need to calculate the standard normal variance, z = (30 - 15)/25 = 0.60. From the standard normal tables, Prob(z <= 0.60) = 0.7257. Thus, Prob(z >= 0.60) = 1 - 0.7257 = 0.2743, or 27.4%.

User Contributed Comments 3

User Comment
dimanyc Since 30 lies between 15 and 40 (1 st dev away), the probability of 30 is less than 34%. Therefore, probty of 30 or more, will be 50 minus that number X, which makes it less than 50%. The only answer applicable is 27.4%.
rjdelong this is true... you are so smart
Lambo83 Dimanyc you are destined for greatness
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