Suppose X ~
(1.1,
.0625). Use a standard normal table to determine Pr(X
.9).
Solution
We have the mean and standard deviation of X as
= 1.1 and
= 0.25. By
[3.91] and [3.92], we calculate m = .070 and s = .224.
Accordingly, X = exp(.224Z + .070), where Z ~
N(0,1). Denote the CDFs of X and Z as
and
. Then