Answer:
38.59% probability that inflation rate will be below 1.9% in 2019
Step-by-step explanation:
Problems of normally distributed samples are solved using the z-score formula.
In a set with mean and standard deviation
, the zscore of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.
In this problem, we have that:
If the annual inflation rate is normally distributed, what is the probability that inflation rate will be below 1.9% in 2019?
This is the pvalue of Z when X = 1.9. So
has a pvalue of 0.3859
38.59% probability that inflation rate will be below 1.9% in 2019