CFA L1 Quants quiz 4

Good Student
Posts: 22
Joined: Wed Apr 03, 2013 5:01 pm

CFA L1 Quants quiz 4

Postby vishnu.ftw » Tue Apr 30, 2013 7:26 pm

A normal distribution has a mean of 39 and a variance of 625. The area under the distribution between 50 and 75 equals ________.
Choose one answer.
a. 0.745
b. 0.319
c. 0.255
The correct answer is 0.255.

First note that the area between two numbers under a probability distribution is the same as the probability of getting a number between those two numbers. The standard deviation of the distribution equals sqrt(625) = 25. The z-value of 50 equals (50-39)/25 = 0.44. The z-value of 75 equals (75-39)/25 = 1.44. Using the Normal probability tables, we get P(z < 0.44) = 0.67 and P(z < 1.44) = 0.9251. The area between 50 and 75 is then given by P(0.44 < z < 1.44) = P(z < 1.44) - P(z < 0.44) = 0.9251 - 0.67 = 0.255.
Marks for this submission: 0/1.

do we get z-value in the exam, or a z-table?

Good Student
Posts: 17
Joined: Tue Apr 09, 2013 10:22 am

CFA L1 Quants quiz 4

Postby lokesh1 » Wed May 01, 2013 11:50 pm

Hey Vishnu

You are supposed to memorize the z-values that would be used to create confidence intervals (both ONE and TWO Tail) with 1%, 5% and 10% level of significance.

Other than these, if required would be supplied to you.

Return to “FRM Part I”


Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.