CHAPTER 6: Continuous Probability Distributions

Exercise 6.1:
Let the random variable Z follow a standard normal distribution.
1. What is P(Z > 0.29)?
2. What is P(Z < 1.23)?
3. What is P(Z > -0.52)?
4. What is P(-0.44 < Z < 1.2)?

Exercise 6.2:
Let the random variable Z follow a standard normal distribution.
1. Find the value k such that P(Z > k) = 0.83
2. Find the value k such that P(Z > k) = 0.43
3. Find the value k such that P(0 < Z < k) = 0.35

Exercise 6.3:
The distribution of IQ scores for high school graduates is normally distributed with mean  =
104 and standard deviation  = 16.
1. Find the probability a person chosen at random from this group has an IQ score above
146.08.
2. What fraction of the IQ scores would be between 97 and 126?
3. What is the 95th percentile of this normal distribution?

Exercise 6.4:
For borrowers with good credit scores, the mean debt for revolving and installment
accounts is $15,015 (BusinessWeek, March 20, 2006). Assume the standard deviation is
$3540 and that debt amounts are normally distributed.
a. What is the probability that the debt for a borrower with good credit is more than $18,000?
b. What is the probability that the debt for a borrower with good credit is less than
$10,000?
c. What is the probability that the debt for a borrower with good credit is between $12,000
and $18,000?
d. What is the probability that the debt for a borrower with good credit is no more than
$14,000?

Exercise 6.5: MULTIPLE-CHOICE QUESTIONS

1. Let the random variable Z follow a standard normal distribution. Find P(0 < Z < 0.57).
A) 0.2843
B) 0.7843
C) 0.2157
D) 0.7157
2. Let the random variable Z follow a standard normal distribution. Find the value k, such that
P( Z > k) = 0.39.
A) 0.28
B) 1.23
C) –1.23
D) –0.28
3. In its standardized form, the normal distribution
a) has a mean of 0 and a standard deviation of 1.
b) has a mean of 1 and a variance of 0.
c) has an area equal to 0.5.
d) cannot be used to approximate discrete probability distributions.
4. For some value of Z, the probability that a standard normal variable is below Z is
0.2090. The value of Z is
a. – 0.81 (NORM.S.INV(0.209))
b. – 0.31
c. 0.31
d. 1.96
5. For some positive value of X, the probability that a standard normal variable is between
0 and +1.5X is 0.4332. The value of X is
 a. 0.10
b. 0.50
c. 1.00
d. 1.50
6. If we know that the length of time it takes a college student to find a parking spot in the
library parking lot follows a normal distribution with a mean of 3.5 minutes and a
standard deviation of 1 minute, find the probability that a randomly selected college
student will find a parking spot in the library parking lot in less than 3 minutes.
a. 0.3551
b. 0.3085
c. 0.2674
d. 0.1915

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