A two-sigma tail probability

XX is Gaussian with mean μ=50\mu = 50 and variance σ2=4\sigma^2 = 4. What is P[X>54]\mathbb{P}[X > 54]? (Give a decimal.)

Show hints (2)+
  1. Standardize: z=(54−50)/σz=(54-50)/\sigma with σ=4=2\sigma=\sqrt4=2.
  2. That is z=2z=2; the one-sided tail P[Z>2]≈0.0228\mathbb{P}[Z>2]\approx 0.0228.

Answer

Reveal answer →

0.0228 (± 0.002)

Create a free account to see the full worked solution and track your progress.

Interview format: Hedge Fund Quant, Prop Trading

Related questions