CFA Practice Question

There are 434 practice questions for this study session.

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?

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
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