What Is the Probability That a Standard Normal Random Variable

question 60

Multiple Choice

What is the probability that a standard normal random variable will be between −2 and 2?

• A) .4772
• B) .0228
• C) .9772
• D) .9544

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Definitions:

Bond Discount

The contrast in value between what a bond is worth in terms of its face value and the lesser amount it is sold for in the market.

Interest Method

A method used in finance to calculate the interest portion of a payment or the return on an investment over a period of time.

Semiannual Interest

Interest that is both computed and disbursed semi-annually on an investment or loan.

Bond Discount

The financial disparity that occurs when a bond is sold for an amount below its stated face value, comparing its selling price to its face value.