In: Finance
X follows a normal distribution with mu = 4.7 and sigma = 1.1.
P(3.05 < X < 3.93) to four decimal places is:
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Probability of normal distribution can be done through the standard normal distribution
Z =(X - µ)/σ
Given
sigma,σ = 1.1
mu,µ = 4.7
P(3.05<X<3.93)
= P[(3.05-4.7)/1.1 <Z<(3.93-4.7)/1.1 ]
= P(-1.65/1.1 < Z< -0.77/1.1)
= P(-1.5 < Z <-0.7)
= 0.2420 - 0.0668
= 0.1752
From standard normal distribution table we get the values of Z
Z (-1.5) = 0.0668
Z (-0.7) = 0.2420