Question

Explain Z Value with an Example and Graph. PLEASE SHOW DETAIL OF
YOUR SET UP, FORMULA, CALCULATION. **NO EXCEL! Thank
you!**

Answer #1

Solution:

Z-value helps in finding what percentage is under the curve at any particular point. It is called a standard score. The area under the whole normal distribution curve is 1. The Z-score is calculated using the formula

Where is the population mean and

is the population standard deviation.

From the graph we can observe that 68.27% of the observation lies within 1 standard deviation from the mean, 95.45% of the observation lies within 2 standard deviation from the mean and 99.73% of the observation lies within 3 standard deviation from the mean.

Example - The mean score for a class of 60 students is 70 and the standard deviation is 15 marks. A student named Amy asked the teacher if by scoring 80 she has performed well or not. The Z-score would be

Z = (80 - 70)/15

Z = 0.67

Write out formula for your z-statistic, verify that the method
is appropriate and explain/show the steps you use to get your value
of z
B.Explain (possibly with a sentence) how you obtained your
p-value, and then explain how your p-value led you to your final
conclusion.

Please show formula and work and calculations! thank you!
Find a value of the standard normal random variable z , call it
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a. P( - z0 ≤ z ≤ 0) = 0.2612
b. P( -3 < z < z0) = 0.9559

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c. P(-ZA<Z<ZA)= .88 Assume that
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The GBPUSD exchange rate was $1.3300 per pound on December 1,
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If the current exchange rate is 105 Japanese yen per U.S.
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