In our example, since the the probability of +2 and -2 are the same under the normal curve, we can simply look for Z = 2.00, the result is 0.4772.Īs spoken above, the probability we looked at is half the normal curve from the middle point. In other words, the table only shows probability of half the curve, therefore the maximum probability you can find is 0.4998 (ideally it should be 0.5). To save space, it is no point to repeat the whole table again with a negative Z value. Standard Normal Table only provides positive Z value but not negative Z value, it is because the normal curve is a regular bell shape, it makes no difference between positive Z and negative Z. The value in the first column (0.00, 0.01, 0.02…) is the first decimal place of Z, the value in the first row (0.00, 0.01, 0.02…) is the second decimal place of Z.įor example, the calculated Z value is 0.13, then we look for the 0.10 in the first column, and look for 0.03 in the first row, the result is 0.0517. Z score < 0 : variable value < mean Step 2 – Look up probability from Standard Normal Table Losing money means the return 0 : variable value > mean, Z score = 1 means 1 standard deviation above the mean, 2 = 2 standard deviation
![standard normal table excel standard normal table excel](https://fasrbytes578.weebly.com/uploads/1/2/5/7/125739781/544828644.jpg)
What is the probability of losing money? Answer
![standard normal table excel standard normal table excel](https://sevenndeals.com/pic/z-lite-shark-matte-black-standard-pool-table-lighting-L3Byb2R1Y3RpbWFnZXMvNjQ2NzljNmItMmY1NS00MWI1LTllOGMtZmMzMzA1YjVjZmI1LzEwNTI3OTU1LmpwZw.jpg)
QuestionĪ fund has a return with a mean of 10% and standard deviation of 5%. I will demonstrate the this concept using an example. SPSS Excel one sample T Test Calculate probability of a range using Z ScoreĪssume that a random variable is a normally distributed (a normal curve), given that we have the standard deviation and mean, we can find the probability that a certain value range would occur.
#STANDARD NORMAL TABLE EXCEL HOW TO#
This tutorial explains how to calculate probability of a range using Z score (standard normal random variable).Įxcel Range, Variance, Standard DeviationĬalculate Z Score and probability using SPSS and Excel