Homework Answers
a)
top 1 % =bottom 99%
Z value at 0.99 = 2.326 (excel formula =NORMSINV( 0.99 ) )
b)
bottom 1 %
Z value at 0.01 =
-2.326 (excel formula =NORMSINV(
0.01 ) )
c)
middle 50 %
proportion left 0.50 is equally distributed both left and right side of normal curve i.e 0.25 left side, 0.25 right side
z value at 0.25 = ±
0.6745 (excel formula =NORMSINV(
0.50 / 2 ) )
so, z cut off value are (-0.6745 , 0.6745)
d)
top=55%
bottom = 1 - 0.55 = 0.45
Z value at 0.45 =
-0.126 (excel formula =NORMSINV(
0.45 ) )
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