Where the normal distribution function changes curvature
Question
What is a point of inflection? Find the point of inflection of the cumulative distribution function of a normal random variable with mean and standard deviation .
Short answer
At . An inflection point is where the second derivative changes sign, so the curve switches between convex and concave. The CDF's second derivative is the derivative of the density, which is positive for and negative for ; the CDF is convex then concave. (The density itself inflects at .)
Adapted from Joshi, Denson & Downes, Quant Job Interview Questions and Answers, Q6.8, p.190; question and answer rewritten by SelfMadeQuant.com.
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Open the worked solutionLessons behind this question
- The Derivative as a Limit: Rates of Change and the Derivative Function
- The Normal Distribution
- Continuous Random Variables and Probability Density Functions
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