
A skill needed for the CRE exam is the ability to look up probabilities given a z-value using a standard normal table. It’s old school, I know, yet without software, you most likely will have to find a few values in this manner.
A z-value is the number of standard deviations from the mean at least that’s how I think of it. The area under the curve to the right or left of the z-value is then the probability of interest. Of course, I’m talking about the normal distribution probability density function or what we commonly all the ‘bell-shaped’ curve. [Read more…]