 # Schweser Exam 2 PM Question: Normal Dist Defined

Question asked ‘which is the least accurate’ Answer was that the normal distribution has a mean of zero and a stddev of 1 I answered that is was the fact that the normal distro is completely described by the mean and standard deviation. Here’s the thing, my guessing they are saying that the normal distribution has a mean of zero and a VARIANCE of 1, but it’s the same thing!! Then they go on to use stddev in the second answer which they say is correct. And how are skew and kurtosis not factors in this. Don’t you have to say that skew = 0 and kurtosis = 3 to truly, fully define the normal distribution?

Augh, I now see the issue… question did not state that the STANDARD normal distribution has mean of 0 and stddev of 1. Augh…

so they said the normal distribution is described by its mean of 0 and var of 1…which is inaccurate and it should have read std of 1…am i reading that correctly?

No, it was my problem. It’s the STANDARD normal distribution that is decribed by mean of 0 and stddev (or variance) of 1… not just any normal distribution.

ahhh, how brutal is that.