Theoretical DistributionsMCQMTP Dec 2022 Series IIQuestion 3541 of 230
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Area between 1.96\displaystyle -1.96 to +1.96\displaystyle +1.96 in a normal distribution is:

Options

A95.45%\displaystyle 95.45\%
B95%\displaystyle 95\%
C96%\displaystyle 96\%
D99%\displaystyle 99\%
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Correct Answer

Option b95%\displaystyle 95\%

All Options:

  • A95.45%\displaystyle 95.45\%
  • B95%\displaystyle 95\%
  • C96%\displaystyle 96\%
  • D99%\displaystyle 99\%

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Detailed Solution & Explanation

**Area Under Normal Curve for Standard Normal Limits** For a standard normal variable ZsimN(0,1)\displaystyle Z \\sim N(0, 1): **Step 1: Identify standard critical values and confidence intervals** From standard normal distribution tables, the probability that Z\displaystyle Z lies within certain standard standard deviation limits is: 1. P(1leZle1)approx0.6827=68.27%\displaystyle P(-1 \\le Z \\le 1) \\approx 0.6827 = 68.27\% 2. P(2leZle2)approx0.9545=95.45%\displaystyle P(-2 \\le Z \\le 2) \\approx 0.9545 = 95.45\% 3. P(3leZle3)approx0.9973=99.73%\displaystyle P(-3 \\le Z \\le 3) \\approx 0.9973 = 99.73\% **Step 2: Determine area for z=pm1.96\displaystyle z = \\pm 1.96** The value z=1.96\displaystyle z = 1.96 is the critical value for a 95%\displaystyle 95\% confidence interval: P(1.96leZle1.96)approx0.9500=95%P(-1.96 \\le Z \\le 1.96) \\approx 0.9500 = 95\% Therefore, the area under the standard normal curve between z=1.96\displaystyle z = -1.96 and z=1.96\displaystyle z = 1.96 is exactly 95%\displaystyle 95\%, which corresponds to Option B. Hence, **Option B** is the correct answer.

About This Chapter: Theoretical Distributions

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Binomial, Poisson, Normal Distribution

This chapter covers Binomial, Poisson, Normal Distribution and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

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