A seemingly simple Excel chart actually took more than 10 minutes. This is unacceptable to me who is used to data visualization software like Spotfire.
However, the hard work paid off, and finally the effect in the textbook was drawn.
The following is a small innovation. If the data granularity is increased (data granularity can meet business requirements), the answers to some questions will be clear at a glance.
for example,
Question: Assuming that the rate of return of a stock has a standard normal distribution, determine the value of the standard normal distribution function (cumulative probability) corresponding to the random variable value of 0.5 and the random variable value of the standard normal distribution corresponding to the cumulative probability of 0.6.
Answer 1 (calculation method):
The value of the standard normal distribution function corresponding to the random variable value of 0.5=NORMDIST(0.5)=0.691
The probability of 0.6 corresponds to the random variable value of the standard normal distribution = NORMSINV(0.6)=0.25
Answer 2: Use the quick reference chart to find the random variable 0.5 on the abscissa axis, and the immediately corresponding cumulative function value is 0.6915.
