- 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
Which of the following statements is incorrect?
B. A standard normal random variable has a mode of 1.0.
C. Any normal random variable can be converted to a standard normal distribution.
A. A standard normal random variable has a variance of 1.0 and is centered at zero.
B. A standard normal random variable has a mode of 1.0.
C. Any normal random variable can be converted to a standard normal distribution.
Correct Answer: B
The mode of a standard normal distribution is 0.0.
User Contributed Comments 3
| User | Comment |
|---|---|
| DonAnd | mean=median=mode=0 |
| ascruggs92 | Almost chose A then remembered that Variance = (Std. Dev.)^2, and the Std. Dev.= 1, and 1^2 = 1 |
| Rachelle3 | BELL SHAPED PROVES IT IS ALL EQUAL (mean, mode, median) just adding on from DonAnd = > |