How to find Nd1 and Nd2
D1 is 0.5850
D2 is 0.2992
Given in ques:
Number of S.D from mean Area of left or right
0.25 0.4013
0.30 0.3821
0.55 0.2912
0.60 0.2743
5 Replies
Dharmesh
(Student)
(1025 Points)
Replied 29 October 2016
Hi,
in this particular sum they have done it through interpolation.
Step
1) The area to the left or right needs to be used to get the area under the curve.
Meaning the area corressponding to 0.25 would be 1 - 0.4013 = 0.5987
Similarly for 0.30 it would be 0.6179
Now using 0.25 and 0.30 with the above values interpolate for 0.2992
Similarly for nd1.
general method taught in class in something else but here the data is given in such a way that we have to use interpolation.
in this particular sum they have done it through interpolation.
Step
1) The area to the left or right needs to be used to get the area under the curve.
Meaning the area corressponding to 0.25 would be 1 - 0.4013 = 0.5987
Similarly for 0.30 it would be 0.6179
Now using 0.25 and 0.30 with the above values interpolate for 0.2992
Similarly for nd1.
general method taught in class in something else but here the data is given in such a way that we have to use interpolation.
Dharmesh
(Student)
(1025 Points)
Replied 29 October 2016
Also the area under the curve would be calculated accordingly if its ine tail two tail etc. and then followed by interpolation.
Tara Khandelwal
(Student CA Final )
(298 Points)
Replied 29 October 2016
In a two tail the area should be divided by 2 and the above method follows..am I correct?
Dharmesh
(Student)
(1025 Points)
Replied 29 October 2016
yepp..two tail is nothing but one tail * 2.. so yeah ur right
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