• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Standard Normal Distribution

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Standard Normal Distribution

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 9, 2023 at 4:07 pm #693003
    jack098
    Participant
    • Topics: 2
    • Replies: 1
    • ☆

    I can’t understand how we got -2.05 as our z-score in c.

    Question:

    The weights of a certain mass-produced item are known, over a long period of time, to be normally distributed with a mean of 8 kg and a standard deviation of 0.02 kg.

    Required:

    (a) If items whose weight lies outside the range 7.985 – 8.035 kg are deemed to be faulty, what percentage of products will be faulty?

    (b) If it is required to reduce the percentage of items that are too heavy (with weight over 8.035 kg) to 2%, to what value must the mean weight be decreased, leaving all other factors unchanged?

    (c) If it is required to reduce the percentage of items that are too light (with weight below 7.985 kg) to 2%, to what value must the standard deviation be decreased, leaving other factors unchanged?

    Answer:

    (a) 26.67% of products will be faulty If weight is 7.985 kg: z = x –? ? Z = (7.985 – 8) ÷ 0.02 = –0.75 If weight is 8.035 kg: Z = (8.035 – 8) ÷ 0.02 = 1.75 So we want P(–0.75 < z < 1.75) = TE(0.75) + TE(1.75) = 0.2734 + 0.4599 = 0.7333 Faulty items are outside this range so the probability that an item is faulty is 1 – 0.7333 = 0.2667.

    (b) The mean weight must be decreased to 7.994 kg. The tail-end probability of 2% corresponds to the table entry 48% = 0.48, and so to the z-value 2.05. Use the formula to work back to calculate the mean: 2.05 = (8.035 – ?)/0.02 ? = 8.035 – (2.05 × 0.02) = 7.994.

    (c) The standard deviation must fall to 0.0073 kg. From the logic above, the z-value must now be –2.05 Use the formula to work back to calculate the standard deviation: –2.05 = (7.985 – 8)/? ? = –0.015 ÷ –2.05 = 0.0073

    October 10, 2023 at 9:09 pm #693025
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54708
    • ☆☆☆☆☆

    It is the same 2.05 as in part (b).

    If the probability of being between above 8.035 is 2%, then the z-score is 2.05.

    Because the curve is symmetrical the z-score for the probably of being below 7.985 (in part (c)) must also be 2.05 for the same reason.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • zan13898 on Sources of Finance – Islamic Finance – ACCA Financial Management (FM)
  • hana256 on Corporate Reorganisation and Capital Reconstruction Schemes (part 2) – ACCA (AFM) lectures
  • rustamdiamond on FA Chapter 9 Questions – Inventory and IAS 2
  • kingkong on Accounting for Management – ACCA Management Accounting (MA)
  • Ken Garrett on Strategy : real life examples – ACCA Strategic Business Leader (SBL)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in