Find and Interpret the Area Under a Normal Curve

question 39

Multiple Choice

Find and Interpret the Area under a Normal Curve
-A physical fitness association is including the mile run in its secondary-school fitness test. The time for this event for boys in secondary school is known to possess a normal distribution with a mean of 470 seconds and a standard deviation of 40 seconds. Find the probability that a randomly selected boy in secondary school will take longer than 378 seconds to run the mile.

• A) 0.9893
• B) 0.4893
• C) 0.0107
• D) 0.5107

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Definitions:

Coupon Rate

The annual interest rate paid by a bond issuer to the bondholders, typically expressed as a percentage of the bond's face value.

Intrinsic Value

The inherent or actual value of an asset, investment, or company, based on underlying perception of its true value including all aspects of the business.

Annual

Refers to something occurring once every year.

Par Value

The face value or nominal value of a bond or stock, which is the amount paid out at maturity or the value on which dividend payments are calculated.