##### Q-36. Assume that a random variable follows a normal distribution with a mean of 80 and a standard deviation of 24. What percentage of this distribution is between 32 and 116? | Financial Risk Manager Part 1 Quiz - LeetQuiz
Financial Risk Manager Part 1
Explanation:
Explanation
Given:
Mean (μ) = 80
Standard deviation (σ) = 24
We want P(32 ≤ X ≤ 116)
Standardize the values:
Lower bound: z₁ = (32 - 80) / 24 = -48 / 24 = -2
Upper bound: z₂ = (116 - 80) / 24 = 36 / 24 = 1.5
Using standard normal distribution:
P(Z ≤ 1.5) = 0.9332
P(Z ≤ -2) = 0.0228
P(-2 ≤ Z ≤ 1.5) = 0.9332 - 0.0228 = 0.9104
Convert to percentage:
0.9104 × 100% = 91.04%
Verification:
Option D: 91.04% ✓
This represents the area under the normal curve between 2 standard deviations below the mean and 1.5 standard deviations above the mean
Approximately 95.44% of data falls within ±2σ, and 86.64% falls within ±1.5σ, so 91.04% is reasonable for the asymmetric interval [-2σ, +1.5σ]
Get started today
Ultimate access to all questions.
Comments (0)
No comments yet.
Q-36. Assume that a random variable follows a normal distribution with a mean of 80 and a standard deviation of 24. What percentage of this distribution is between 32 and 116?