- 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
For a data collection, if a score has a z-score of 1.5, then ______
B. the score is better than 15% of the scores in the data collection.
C. the score is 1.5 standard deviations below the mean.
A. the score is 1.5 standard deviations above the mean.
B. the score is better than 15% of the scores in the data collection.
C. the score is 1.5 standard deviations below the mean.
Correct Answer: A
A z-score provides the number of standard deviations an x-score is above or below the mean. A z-score of 1.5 informs you that the piece of data is 1.5 standard deviations above the mean.
User Contributed Comments 5
| User | Comment |
|---|---|
| StanleyMo | so when it change to -1.5 then it will be below the mean. |
| TammTamm | That's what I think stanleymo. Hopefully that's correct. |
| tschorsch | z = (value - mean) / stddev positive zs are above the mean negative zs are below the mean you can either remember the meaning and derive the equation or remember the equation and derive the meaning if you can remember both, you will have redundant knowledge that will save time and prevent errors if you need to remember one, the meaning is usually more useful since it will allow you to answer non calculated questions without having to understand the meaning from the equation. |
| gbose | Z = 1.5 = (X - Mean) / SD => X = 1.5 SD + Mean i.e. Score is 1.5 Standard Deviation above the mean |
| akils | if the score was -1.5, the answer would have been C. |