- CFA Exams
- 2021 CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 9. Common Probability Distributions
- Subject 8. The Standard Normal Distribution

###
**CFA Practice Question**

The daily sales at a certain cafe follow a normal distribution with a mean of $1,060 and a standard deviation of $310. What is the z-value associated with daily sales of $1,711?

B. 2.10

C. 36.97

A. -2.10

B. 2.10

C. 36.97

Correct Answer: B

The z-value is computed as: z = (x - μ)/σ = 2.10.

###
**User Contributed Comments**
4

User |
Comment |
---|---|

srdgreen |
Could it be A as well? |

FozzeyBear |
don't ask stupid questions |

cfastudypl |
Couldn't have been A because: (1,711-1060)/310 = 2.10. You can read up the notes for this study session and follow through with the examples and question 1-7 to strengthen your understanding. Good luck. |

Huricane74 |
@srdgreen, If daily sales were $409, then the z-score would be a negative 2.1 z = ((x - μ)) /σ = ((1,711 - 1,060 ))/310 = 2.10 z = ((x - μ)) /σ = ((409 - 1,060 ))/310 = -2.10 |