Theoretical DistributionsMCQPYQ Dec 21Question 3550 of 230
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Let x\displaystyle x be normal distribution with mean 2.5 and variance 1. If P(x2.5)=0.4772\displaystyle P(x \le 2.5) = 0.4772 and that the cumulative normal probability value at 2 is 0.9772, then a=?\displaystyle a = ?

Options

A0.5
B3
C- 3.5
D- 4.5
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Correct Answer

Option a0.5

All Options:

  • A0.5
  • B3
  • C- 3.5
  • D- 4.5

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Detailed Solution & Explanation

**Finding Parameter a\displaystyle a in Normal Distribution** Let XN(μ,σ2)\displaystyle X \sim N(\mu, \sigma^2) where μ=2.5\displaystyle \mu = 2.5 and σ2=1    σ=1\displaystyle \sigma^2 = 1 \implies \sigma = 1. **Given cumulative probability information:** - Cumulative probability value at Z=2\displaystyle Z = 2 is 0.9772\displaystyle 0.9772: Φ(2)=0.9772\Phi(2) = 0.9772 - By symmetry of the standard normal distribution: Φ(2)=1Φ(2)=10.9772=0.0228\Phi(-2) = 1 - \Phi(2) = 1 - 0.9772 = 0.0228 **Interpreting the question statement:** The expression P(x2.5)=0.4772\displaystyle P(x \le 2.5) = 0.4772 contains a typo because the cumulative probability up to the mean μ=2.5\displaystyle \mu = 2.5 must be exactly 0.5\displaystyle 0.5 (P(X2.5)=0.5\displaystyle P(X \le 2.5) = 0.5). The intended statement refers to the interval between a\displaystyle a and the mean 2.5\displaystyle 2.5: P(aX2.5)=0.4772P(a \le X \le 2.5) = 0.4772 **Step 1: Set up the equation for a\displaystyle a** P(aX2.5)=P(X2.5)P(Xa)=0.5P(Xa)=0.4772P(a \le X \le 2.5) = P(X \le 2.5) - P(X \le a) = 0.5 - P(X \le a) = 0.4772 P(Xa)=0.50.4772=0.0228P(X \le a) = 0.5 - 0.4772 = 0.0228 **Step 2: Standardize the variable** Za=aμσ=a2.51=a2.5Z_a = \frac{a - \mu}{\sigma} = \frac{a - 2.5}{1} = a - 2.5 We need to find Za\displaystyle Z_a such that: P(ZZa)=0.0228P(Z \le Z_a) = 0.0228 Since we know Φ(2)=0.0228\displaystyle \Phi(-2) = 0.0228, we equate: Za=2Z_a = -2 a2.5=2    a=2.52=0.5a - 2.5 = -2 \implies a = 2.5 - 2 = 0.5 Hence, **Option A** 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.

Key Concepts to Understand

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