Understanding N(z) Vs N-Inverse(p) Vs N'(z) in Normal Distribution | FRM Part 1

Published: 18 July 2024
on channel: finRGB
506
24

Confused about N(z), NInverse(p), and N'(z) in the standard normal distribution? This short video breaks down the differences!

N(z): The Cumulative Distribution Function (CDF). It tells the probability that a value is less than or equal to z.
NInverse(p): The Inverse Cumulative Distribution Function. It finds the z corresponding to a given probability p.
N'(z): The Probability Density Function (PDF). It gives the height of the curve at z, indicating the likelihood of values around z.

For more in-depth preparation resource for the FRM exam, please browse over to the course pages below:
FRM Part 1: https://www.finRGB.com/courses/frm-pa...
FRM Part 2: https://www.finRGB.com/courses/frm-pa...


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