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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Normal Distribution
A normal distribution has a mean of 75 and a variance of 25.
What is the upper quartile of this distribution?
58.25
71.65
78.35
91.75.
This is bpp kit question. I am unable to get how it get answer of 78.35.
He is taking upper quartile as 0.67×5 = 3.35.
Why is he taking 0.67?
The upper quartile is 25% (or 0.25) above the mean of 75.
Working backwards using the tables, to end up with a probability of 0.25 then it must be 0.67 standard deviations about the mean. (0.67 gives 0.2486 which is nearer to 0.25 than if we had taken 0.68 which gives 0.2517).
Thank you.
You are welcome.