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Normal Distribution (Question 4b.18) BPP 2020/2021

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Normal Distribution (Question 4b.18) BPP 2020/2021

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by John Moffat.
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  • October 29, 2021 at 11:21 am #639373
    kavishabrito
    • Topics: 17
    • Replies: 15
    • ☆

    Hi sir,

    Can you explain to me how to calculate the upper quartile of normal distribution?
    The answer says about some 0.67, which I cannot understand where it came from.

    Thank You.

    October 29, 2021 at 3:10 pm #639383
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49902
    • ☆☆☆☆☆

    The quartiles are the pints one quarter, two quarters, and three quarters through the distribution.

    The upper quartlile is three quarters and the distance between the mean (which is the 2nd quartile) and the upper quartile is 1/4 or 25%.

    To get the number of standard deviations that give a probability of 25% or 0.25, we use the normal distribution tables ‘backwards’ in the way I explain in my free lectures, and get 0.67 standard deviations.

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