If the return is $0.10, then \(x = 0.1\) (this is our observed value).
The probability that the return is less than $1 is closest to: for this question, we would first need to find alpha the area underneath the cure which does not lay between -z and z alpha 100 - 95 1 - 0.95 0.05 now we also know that our Standard Normal Distribution is symmetrical, so we divide alpha to equally be on either side of our wanted area.
The returns on ABC stock are normally distributed, where the mean is $0.60 with a standard deviation of $0.20. Positive z-values Example: Using the z-score Table Simply put, if an examiner asks you to find the probability behind a given positive z-value, you will have to look it up directly on the table, knowing that \(P(Z ≤ z) = θ(z)\) when \(z\) is positive. However, the table does this only when we have positive values of \(z\). Using the standard normal distribution table, we can confirm that a normally distributed random variable \(Z\), with a mean equal to 0 and variance equal to 1, is less than or equal to \(z\), i.e., \(P(Z ≤ z)\).
