Answer Losing money means the return < 0. However, the table does this only when we have positive values of \(z\). When calculating probability, we represent this statement as P (X < 0) Step 1 Calculate Z Score The first step is to standardize the target variable value into a standard normal random variable (Z Score) using the known standard deviation and mean. 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. Positive z-values Example: Using the z-score Table The returns on ABC stock are normally distributed, where the mean is $0.60 with a standard deviation of $0.20. The probability that the return is less than $1 is closest to: 6.1.14-T Finding a z-score for a standard normal distribution using StatCrunch Watch on Intro Howdy I'm Professor Curtis of Aspire Mountain Academy here with more statistics homework help. Today we're going to learn how to find a z-score for a standard normal distribution using StatCrunch. If the return is $0.10, then \(x = 0.1\) (this is our observed value).
