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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Normal distribution

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • January 19, 2021 at 4:03 am #607070
    mmuthoni
    Participant
    • Topics: 5
    • Replies: 3
    • ☆

    in example 3 dealing with tables backwards how did you come to the conclusion that 95% is less than 10cm as opposed to it being above 10cm?
    I have understood almost everything like how to we came to the answer, except that little bit. how do you know whether to add the z score to the mean or to subtract it?.

    January 19, 2021 at 6:35 am #607091
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54682
    • ☆☆☆☆☆

    Best is to draw yourself a little sketch 🙂

    The question asks for X where the probability of being more than X is 95%. Therefore X must be below the average of 10cms. We know that there is a 50% chance of being above the average of 10cms and therefore there must be a 45% chance of being between X and the average.

    Since there is a 50% chance of being below the average there must be a 5% chance of being below X.

    (Have you watched the lectures working through this chapter of the lecture notes?)

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