- CFA Exams
- CFA Exam: Level I 2021
- 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 |