# use z score to solve the probability

Fluctuation in the prices of precious metals such as gold have been empirically shown to be well approximated by a normal distribution when observed over short interval of time. In May 1995, the daily price of gold (1 troy ounce) was believed to have a mean of $383 and a standard deviation of $12. A broker, working under these assumptions, wanted to find the probability that the price of gold the next day would be between $394 and $399 per troy ounce. In this eventuality, the broker had an order from a client to sell the gold in the client's portfolio. What is the probability that the client's gold will be sold the next day?

© BrainMass Inc. brainmass.com October 10, 2019, 4:47 am ad1c9bdddfhttps://brainmass.com/math/probability/z-score-solve-probability-476541

#### Solution Summary

The solution provides detailed explanation how to use a z score to solve the probability.

$2.19