 # cfa eco reading #10, question #10

Can someone pls help me in understanding the solution to this problem:

" the probabilities can be taken from a normal table, in which the critical z-values are 2 & 3 and we are including the probabilities in both tails. the probabilities that the exchange rate will be at least 2, or 3 standard deviations away from the mean are:

P(|x-u| >=2std) = 0.0456

P(|x-u|>=3std) = 0.0026

i don t understand the notation, and the corresponding values, unless i’m looking at this problem in the wrong way. PLs help…

1st statement:

probability that (u - 2 std < x < u + 2 std ) or that x lies between mean +/- 2 std deviations = 1 - 0.0456 = 0.9544

you have a 95.44% prob that your value x lies between 2 std deviations from the mean u.

Ty for the reply. But the post i posted was the answer. The question reads as follows:

an exchange rate has a given expectrd future value and std deviatio :

A. Assuming that the exchange rate is normally distributed what are the probabilities that the exchange rate will be at least 2 or 3 standard deviations from mean?

Im co fused on the notationx-u and the values they got as theanswer is what i posted originally???

that is what i was explaining above.