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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › standard normal distribution table
Can someone explain how i use this table – am confused 🙁
hoping u r a p4 student, then acca video from the below link is useful. Which states how to use normal table during the video
https://www.youtube.com/watch?v=y-c_Dgvit8Q
see also the bottom link on opentution and also search for value at risk if you really want for that on opentution
easy: when you calculate d1 or d2 using formulaes provided, you take the number (say, d1=1,6789) with 2 decimals: d1=1,68. then you find the line and the column according to your value: line with value 1,6 and column with number 0,08. you take the number in the according cell: 0,4535. Since d1>0, you have to add 0,5 to the value to get N(d1): N(d1)=0,4535+0,5=0,9535. Same with d2.
If d1<0, say d1=-1,6789, you subtract the number from the table from 0,5: N(d1)=0,5-0,4535=-0,0465.