Quantitative Analysis- Module 5
True or false: The letter used to denote the standard normal random variable is Z.
True
The inverse transformation, x = μ + zσ is used to ______.
compute x values for given probabilities
The z table used in the textbook provides ___ probabilities.
cumulative
The standard normal distribution is a special case of the___ distribution.
gaussion
The first row of the standard normal table, denoted as the z row, shows values of z up to the ___ decimal point.
hundredths
Scores on the SAT exam follows the___ distributon.
normal
A normal random variable X is transformed into Z by ______.
subtracting the mean, and then dividing by the standard deviation.
The first column of the standard normal table, denoted as the z column, shows values of z up to the __) decimal point.
tenth
We transform X into Z by subtracting from X its mean and dividing by its standard deviation; this is referred to as the standard
transformation
Consider data that are normally distributed. In order to transform a standard normal value z into its unstandardized value x, we use the following formula:
x = μ + zσ
Consider data that are normally distributed. In order to transform a value x into it standardized value z, we use the following formula:
z = x−μ/σ
The mean of the standard normal distribution is equal to ______.
zero
The probability that a normal random variable X is less than its mean is equal to
0.50
The shape of the graph depicting the normal probability density function is ______.
bell shaped
The normal distribution is completely described by these two parameters:
mean and variance
Rate of return on an investment follows the ___ distribution.
normal
Since the z table provides the cumulative probabilities for a given value of z, how can we calculate P(Z > z)?
= 1 - P(Z ≤ z)