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Normal distribution

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

  • This topic has 4 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • June 5, 2021 at 5:58 am #623220
    iza1
    Participant
    • Topics: 115
    • Replies: 112
    • ☆☆☆

    Hi John Sorry I posted in PM instead

    Hi John

    Can you please help me with this question
    The heights of adult females are normally distributed with a mean of 163 cm and a standard deviation
    of 1.5 cm.
    Ms X falls within one standard deviation of the mean. What range of heights does she fall
    within?

    Answer is 161.5 – 164.5 cms

    My working

    1 SD = 0.3413

    50 – 34.13 = 15.87%

    z score of 15.87 % = 0.1554 & 0.1591
    Average = 0.400 + 0.401 / 2 = 0.4005

    i’m stuck here. Can you kindly help

    Please can you help with this too :

    Based upon evidence from a number of years, PCM’s sales revenue is believed to be normally
    distributed with a mean of $50,000 and a standard deviation of $8,000. The following
    calculations have been used to illustrate what these signify:
    I $50,000 + (1.65 × $8,000) = $63,200
    II $50,000 – (1.65 × $8,000) = $36,800

    Answer

    The probability that sales revenue will be in the range $36,800 to $63,200 is 90%.

    The book doesn’t explain this and i tried calculating coefficient of variation but I dont think that is the way

    June 5, 2021 at 9:30 am #623253
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    First question:

    Ms X will have a height between 1 SD below the mean of 163cm and 1 SD above the mean of 163cms.

    1 SD 1.5cms, and therefore the heights are between 163 – 1.5 = 161.5, and 163 + 1.5 = 164.5 cms.

    June 5, 2021 at 9:35 am #623254
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    Second question:

    For the probability to be 90%, there must be a probability of 45% of being above the mean of $50,000 and a 45% probability of being below the mean of $50,000.

    Working backwards from the tables, for a probability of 0.45 (45%) the z score is 1.65.

    The standard deviation is $8,000 and therefore 1.65 SD’s is 1.65 x $8,000.

    Therefore there is a 90% probability of being between 1.65 x $8,000 below the mean and 1.65 x $8,000 above the mean.

    Have you watched my free lectures on the normal distribution, because this is all explained in detail?

    (I am puzzled as to why you are asking a question about Paper MA when you have also been asking questions about Paper AAA? You cannot have been taking Paper AAA without having already passed Paper MA. 🙂 )

    June 5, 2021 at 4:41 pm #623309
    iza1
    Participant
    • Topics: 115
    • Replies: 112
    • ☆☆☆

    Sorry John. I came across this in another qualification and your lecture for MA was really helpful. Thank you for all your help. You are truly changing people’s lives.

    June 5, 2021 at 4:53 pm #623317
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    Thank you for your comment 🙂

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • The topic ‘Normal distribution’ is closed to new replies.

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