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Standard Deviation Question

Forums › CIMA Forums › Standard Deviation Question

  • This topic has 0 replies, 1 voice, and was last updated 7 years ago by krussell.
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  • November 26, 2018 at 7:55 am #485541
    krussell
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    • Topics: 1
    • Replies: 0
    • ☆

    Hi! Could someone help me with a practice question on standard deviation please?

    “Returns from a project are normally distributed with a mean of 220k and a standard deviation of 160k. What is the probability of the project losing more than 80k? Give your answer to the nearest whole %”

    I began by subtracting 220k from 80k, then divided the answer (140k) by the standard deviation (160k) to get a Z score of 0.875. The table shows this as 0.3106. I then subtracted this from 0.5 to find out the probability of losing more than 80k, which gives 18.9%, rounded to 19%.

    The answer is not 19%. I can’t find the answer to this question. It’s on a practice exam that doesn’t give answers – it only says if you are correct. Where am I going wrong?

    Thanks!!

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