For the top 40% of the funds, the cutoff value is 0.025.
A continuous data distribution with a bell-shaped curve is called a normal distribution. The mean and standard deviation of the random variable with a normally distributed value is x.
The amount of standard deviations the data point deviates from the mean is shown by the standardized z-score.
Below is how the highest 40% of these monies were obtained:
Considering,
P (Z > z) = 0.40
1 - P (Z ≤ z) = 0.40
P (Z ≤ z) = 0.60
The area to the left, z = 0.25, is determined by the junction of the row and column values.
The value of z that corresponds to the probability of 0.60 in the "Standard normal table" is 0.25.
z = (x - μ) / σ
0.25 = (x - 0.011) / 0.056
0.25 * 0.056 = x - 0.011
x = 0.014 + 0.011
x = 0.025
The probability of the standard normal table, which corresponds to the top 40% of the funds, is 0.6. The cutoff value for the highest 40% of the funds is calculated by multiplying the population mean by the product of the z-value and standard deviation.
To know more about Z-value, refer to this link:
https://brainly.com/question/22068540
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