CFA Practice Question

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CFA Practice Question

The amount of fill in a certain brand of bottled water is normally distributed with a mean of 16 ounces and a standard deviation of .25 ounce. What is the probability that a bottle has more than 16.25 ounces?

A. 0.1587
B. 0.3413
C. 0.6587
Correct Answer: A

The z-value corresponding to 16.25 is computed as: z = (16.25 - 16)/0.25 = 1.00. P(Z>=1.00) = 1 - P(Z <=1.00) = 1 - 0.8413 = 0.1587

User Contributed Comments 6

User Comment
JimM 16.25 ounces is positive one SD. 68% of all fall within one SD, so 32% fall more than one SD away. Half are positive (above mean) and half are negative (below mean), so 16% chance of more than 16.25 ounces, so A.
TammTamm I guessed at A. It seemed like the only logical answer. I hope guessing works on the exam.
jansen1979 1SD above mean. 1-0.68 = .32/2 = .16
bundy Just as easy to say that there is a 84.13% chance of being within 16.25. 1 - .8413 = .1587 chance of being outside of 16.25
sgossett86 empirical rule
Rachelle3 I wonder in the actual test instead of giving us the Stan dev it tells us the variance then from there we would need to sq root the variance to get the stan dev before doing the formula like analystnotes shows? hmmm......
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