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Continuous Random Variable Normal Distribution

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Presentation on theme: "Continuous Random Variable Normal Distribution"— Presentation transcript:

1 Continuous Random Variable Normal Distribution
Unimodal Symmetrical Asymptotic to X-Axis X Curve is Uniquely Determined by two Parameters: µ and σ

2 Normal Curves for Different Means and Standard Deviations
20 30 40 50 60 70 80 90 100 110 120

3 Standardized Normal Distribution
A normal distribution with a mean of zero, and a standard deviation of one Z Formula standardizes any normal distribution Z Score the number of standard deviations which a value is away from the mean s = 1

4 We can find the equivalent point on the Standardized Normal Curve
for a point on any other normal Curve. s = ? s = 1 X Z

5 Z Table Second Decimal Place in Z

6 P( 0 ≤ Z ≤ 1 ) = P( -1 ≤ Z ≤ 1 ) = P( 0 ≤ Z ≤ 2 ) = P( -2 ≤ Z ≤ 2 ) =

7 P( Z ≥ 1 ) = P( Z ≤ ) = P( 1.25 ≤ Z ≤ 2.50) = P( ≤ Z ≤ 2.66) = Find C such that Probability is: P( Z ≤ C ) = .80

8 s = 10 Areas for a Normal Curve with µ = 80 σ = 10 Z P( X ≥ 90 ) =

9 P( 65 ≤ X ≤ 90 ) = Find C such that P( X ≥ C ) = .15

10 Ex µ = $951 σ = $96 P( X ≥ $1000 ) = P( 900 ≤ X ≤ 1100 ) =

11 P( 825 ≤ X ≤ 925 ) = P( X < 700 ) =

12 Ex 6.12 µ = 200 σ = 47 Find C given this Probability
P( X > C ) = .60 P( X < C ) = .83

13 P( X < C ) = .22 P( X < C ) = .55

14 Normal Approximation to Binomial Distribution Probabilities
Necessary Condition: n ≥ 100 and n•p ≥ 5 We use a Normal Curve which has the same Mean and Std Dev as the Binomial Distribution. Continuity Correction – We will assign all real values for a unit Interval to the single discrete binomial outcome. i.e. X = 40  ≤ X ≤ 40.5 Ex: 100 Coin Tosses – n = 100 p= .5 q = .5

15 P100(X=40) ≈ P( 39.5 ≤ X ≤ 40.5) P100(40≤X≤60) ≈ P( 39.5 ≤ X ≤ 60.5)

16 Ex: 180 Die Rolls – S = 1 Spot n = 180 p = 1/6 q = 5/6
P180(X=25) ≈ P( 24.5 ≤ X ≤ 25.5) P180(X≤25) ≈ P(X ≤ 25.5)

17 Ex: n = 150 p = .75 P150(X < 105) ≈ P150(110≤X≤120) ≈

18 P150(X > 95) ≈


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