Value-at-Risk Theory and Practice
The first advanced book on value-at-risk
Chapter 3, Page 140 Exercise 27
Suppose Z ~ N(0, 1). Use a standard normal table to determine Pr(Z 0.51). (Hint: Use the symmetry of the normal distribution to find a solution.)
Solution
A standard normal table only lists values (x) for positive x, but consider the following exhibit.
By the symmetry of the normal distribution and the fact that the area under the entire PDF is 1, we obtain
[s1]
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0.51). (Hint: Use the symmetry of the normal distribution to
find a solution.)
(x)
for positive x, but consider the following exhibit.
