Question: Answer all parts of this question.

A business analyst has observed the distribution of growth rates across all countries and noted that growth rates are normally distributed with a mean of 6.5 and a standard deviation of 1.6.

a) Explain how any variable that is normally distributed may be transformed into one that follows the standard normal distribution.

b) Calculate the probability that a country’s growth rate exceeds 10 per cent.

c) Calculate the probability that a country’s growth rate is less than 4 per cent.