Finance Junkie
Posts: 205
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Postby » Wed Mar 20, 2013 3:55 pm

pproximately 50 percent of all observations for a normally distributed random variable fall in the interval:

A) µ ± 0.67σ
B) µ ± σ
C) µ ± 2σ
D) µ ± 3σ

If the ans i A . can u please explain

Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am


Postby content.pristine » Thu Mar 21, 2013 10:43 am

Dear Anbu,
Especially for the FRM Exam, such figures must be memorized.
For a normal distribution, were µ=0 and σ=1, to cover 50% of the area under the curve (with µ=0) as midpoint is +/- 0.67.

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