- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 9. Common Probability Distributions
- Subject 8. The Standard Normal Distribution

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**CFA Practice Question**

Daily travel expenses for H&J Employees are normally distributed with a mean of $250 and a standard deviation of $38. Q1 for this distribution is ______.

A. $224.54

B. $275.46

C. $288.00

**Explanation:**We want the cutoff for the bottom 25% of the distribution. The row and column for a table value of 0.25 is row 0.6 and column of 0.07. The x-score for a z-score of -0.67 is 250 - 0.67(38) = 224.54. So, Q1 = $224.54.

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**User Contributed Comments**
3

User |
Comment |
---|---|

ksnider |
why is 224.54 written on the graph? that gives the answer away... |

Rivermax |
Given the mean is known at 250 logic suggests Q1 will be below this number. |

Nakata |
Stupid question |