- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 4. Common Probability Distributions
- Subject 7. The Standard Normal Distribution
CFA Practice Question
The daily sales at a certain shop follow a normal distribution with a mean of $1,060 and a standard deviation of $310. What is the probability that the daily sales are less than $409?
B. 0.4821
C. 0.5179
A. 0.0179
B. 0.4821
C. 0.5179
Correct Answer: A
The z-value corresponding to $409 is computed as: z = (409 - 1060)/310 = -2.10. From z-table P(Z <= -2.10) = 0.0179, P(Sales <= 409) = 0.0179.
User Contributed Comments 1
| User | Comment |
|---|---|
| Rotigga | (409-1060)/310=-2.1 So we know this is between 95% and 99% CI (1.96 and 2.58 respectively). Which means left tail is between 2.5% and 0.5%. The only answer in that range is A (0.0179) which is correct. |