1. STAT 104 Section 6 Daniel Moon

2. Agenda Review Midterm 1 Practice Problems

3. Review Normal Approximation Check condition Continuity Correction When to add or subtract 0.5 Random Walk Problems Sum of random variables can not only follow a normal distribution, but average of random variables can also follow a normal distribution. CLT: Revisit Last Problem http://www.stat.sc.edu/~west/javahtml/CLT.html http://www.stat.sc.edu/~west/javahtml/CLT.html

4. Problem #1 Graphical Display How to get an information about center and spread from graphs. Boxplot, Histogram Normal Probability Plot Check normality.

5. Problem #1 4-6 SD IQR

6. Problem #1

7. Problem #2 When you use random variables, You should define your random variables. X: Consumer debt Normal Distribution How to calculate a probability using normal table?

9. Problem #3 Linear Regression Assumptions Residuals have an expected value 0. Residuals are uncorrelated. Residuals have the same variance. Residuals follow a normal distribution. To check these assumptions: Residual plot (residuals vs. X): constant variance Normal Prob. Plot: Normality

10. Problem #3

11. Problem #4 Design of Experiment 3 Principles of Experimental Design Control Randomization Replication Factors You Should Write Sample Size Individuals Experimental Design Individuals Selected Response Variable

12. Problem 4

13. Problem 6 a. X: # of airbag failures in 8 severe auto accidents b. X: # of airbag failures in 10000 severe auto accidents