NORMAL RANDOM VARIABLES (Normal or gaussian distribution)

Similar documents
Density curves. (James Madison University) February 4, / 20

Chapter Seven. The Normal Distribution

Chapter Six Probability Distributions

Statistics 511 Supplemental Materials

Section 6.5. The Central Limit Theorem

No, because np = 100(0.02) = 2. The value of np must be greater than or equal to 5 to use the normal approximation.

Introduction to Statistics I

Department of Quantitative Methods & Information Systems. Business Statistics. Chapter 6 Normal Probability Distribution QMIS 120. Dr.

Chapter 6. The Normal Probability Distributions

STAT:2010 Statistical Methods and Computing. Using density curves to describe the distribution of values of a quantitative

ECO220Y Continuous Probability Distributions: Normal Readings: Chapter 9, section 9.10

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Distribution of the Sample Mean

Chapter 7 Sampling Distributions and Point Estimation of Parameters

STAT Chapter 5: Continuous Distributions. Probability distributions are used a bit differently for continuous r.v. s than for discrete r.v. s.

Homework: Due Wed, Nov 3 rd Chapter 8, # 48a, 55c and 56 (count as 1), 67a

Topic 6 - Continuous Distributions I. Discrete RVs. Probability Density. Continuous RVs. Background Reading. Recall the discrete distributions

ECON 214 Elements of Statistics for Economists 2016/2017

Section 7.5 The Normal Distribution. Section 7.6 Application of the Normal Distribution

Lecture 6: Chapter 6

The Normal Distribution

PROBABILITY DISTRIBUTIONS. Chapter 6

Expected Value of a Random Variable

The graph of a normal curve is symmetric with respect to the line x = µ, and has points of

continuous rv Note for a legitimate pdf, we have f (x) 0 and f (x)dx = 1. For a continuous rv, P(X = c) = c f (x)dx = 0, hence

ECON 214 Elements of Statistics for Economists

In a binomial experiment of n trials, where p = probability of success and q = probability of failure. mean variance standard deviation

AMS7: WEEK 4. CLASS 3

Math Tech IIII, May 7

Honors Statistics. Daily Agenda

MATH 104 CHAPTER 5 page 1 NORMAL DISTRIBUTION

STAT Chapter 5: Continuous Distributions. Probability distributions are used a bit differently for continuous r.v. s than for discrete r.v. s.

The Normal Probability Distribution

Random Variables. 6.1 Discrete and Continuous Random Variables. Probability Distribution. Discrete Random Variables. Chapter 6, Section 1

Chapter 3. Density Curves. Density Curves. Basic Practice of Statistics - 3rd Edition. Chapter 3 1. The Normal Distributions

What type of distribution is this? tml

Homework: Due Wed, Feb 20 th. Chapter 8, # 60a + 62a (count together as 1), 74, 82

A continuous random variable is one that can theoretically take on any value on some line interval. We use f ( x)

CHAPTER 6 Random Variables

Chapter 6: Random Variables

Central Limit Theorem

The Normal Distribution

Review of commonly missed questions on the online quiz. Lecture 7: Random variables] Expected value and standard deviation. Let s bet...

Chapter 4 Probability and Probability Distributions. Sections

Chapter 6: Random Variables and Probability Distributions

Unit2: Probabilityanddistributions. 3. Normal distribution

Standard Normal Calculations

LECTURE 6 DISTRIBUTIONS

Section Introduction to Normal Distributions

. 13. The maximum error (margin of error) of the estimate for μ (based on known σ) is:

STA 320 Fall Thursday, Dec 5. Sampling Distribution. STA Fall

Lecture 5 - Continuous Distributions

Introduction to Business Statistics QM 120 Chapter 6

Lecture Slides. Elementary Statistics Tenth Edition. by Mario F. Triola. and the Triola Statistics Series. Slide 1

Example - Let X be the number of boys in a 4 child family. Find the probability distribution table:

Theoretical Foundations

AP * Statistics Review

Chapter 8. Variables. Copyright 2004 Brooks/Cole, a division of Thomson Learning, Inc.

What was in the last lecture?

Lecture 12. Some Useful Continuous Distributions. The most important continuous probability distribution in entire field of statistics.

Normal Probability Distributions

Normal distribution. We say that a random variable X follows the normal distribution if the probability density function of X is given by

STAT Chapter 6 The Standard Deviation (SD) as a Ruler and The Normal Model

STAT Chapter 6 The Standard Deviation (SD) as a Ruler and The Normal Model

MAKING SENSE OF DATA Essentials series

Chapter 6 Continuous Probability Distributions. Learning objectives

Determining Sample Size. Slide 1 ˆ ˆ. p q n E = z α / 2. (solve for n by algebra) n = E 2

5.1 Mean, Median, & Mode

Statistics for Business and Economics

CHAPTER 5 Sampling Distributions

Example - Let X be the number of boys in a 4 child family. Find the probability distribution table:

Data Analysis and Statistical Methods Statistics 651

11.5: Normal Distributions

Making Sense of Cents

3.3-Measures of Variation

Normal Probability Distributions

Prob and Stats, Nov 7

Lecture 8. The Binomial Distribution. Binomial Distribution. Binomial Distribution. Probability Distributions: Normal and Binomial

Lecture 9. Probability Distributions. Outline. Outline

Quantitative Methods for Economics, Finance and Management (A86050 F86050)

Continuous Probability Distributions & Normal Distribution

MTH 245: Mathematics for Management, Life, and Social Sciences

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Lecture 9. Probability Distributions

CHAPTER 5 SAMPLING DISTRIBUTIONS

The Binomial Distribution

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Continuous Distributions

MAS1403. Quantitative Methods for Business Management. Semester 1, Module leader: Dr. David Walshaw

Lecture 6: Normal distribution

Chapter 9 & 10. Multiple Choice.

If the distribution of a random variable x is approximately normal, then

STAB22 section 1.3 and Chapter 1 exercises

AMS 7 Sampling Distributions, Central limit theorem, Confidence Intervals Lecture 4

Statistics (This summary is for chapters 18, 29 and section H of chapter 19)

8.1 Estimation of the Mean and Proportion

Statistics for Business and Economics: Random Variables:Continuous

Honors Statistics. Daily Agenda

Business Statistics 41000: Probability 3

7.1 Graphs of Normal Probability Distributions

Transcription:

NORMAL RANDOM VARIABLES (Normal or gaussian distribution) Many variables, as pregnancy lengths, foot sizes etc.. exhibit a normal distribution. The shape of the distribution is a symmetric bell shape. The symmetry indicates that the variable is just as likely to take a certain distance below its mean as it is to take the same distance above its mean The shape is determined by the mean µ, the spread by the standard deviation σ. Since the total area must be 1, if the distribution spread gets larger, the height is lower.

THE STANDARD DEVIATION RULE AREA=0.68=68% P(µ σ < X < µ +σ) = 0.68 = 68%

THE STANDARD DEVIATION RULE AREA=0.95=95% P(µ 2σ < X < µ + 2σ) = 0.95 = 95%

THE STANDARD DEVIATION RULE AREA=0.997=99.7% P(µ 3σ < X < µ + 3σ) = 0.997 = 99.7%

TOTAL AREA=0.16 + 0.68 + 0.16 = 1 0.16 0.68 0.16

TOTAL AREA=0.025 + 0.95 + 0.025 = 1 0.95 0.025 0.025

TOTAL AREA=0.0015 + 0.997 + 0.0015 = 1 0.997 0.0015 0.0015

Example: Suppose that foot length of adult males is a normal random variable with µ=11 and σ=1.5. a) What is the probability that a randomly chosen adult male will have a foot length between 8 and 14 inches? b) An adult male is almost guaranted (0.997 probability) to have a foot length between what two values? c) The probability is only 2.5% that an adult male will have a foot length greater than how many inches? a) 95% b) 6.5 and 15.5 inches c) 14 inches d) 50% d) What is the probability that a male s foot is shorter than 11 inches?

EXAMPLE: Length (in days) of human pregnancy is a normal random variable X with mean 266 and standard deviation 16. a) The probability is 0.95 that a pregnancy will last between:? b) The shortest 16% of pregnancies last less than:? c) The probability of a pregnancy lasting longer than 314 days is:? d) There is a probability of 50% that a pregnancy will last longer than:? a) P(µ 2σ < X < µ+2σ)=0.95 234 298 b) P(X < µ σ)=0.16 250 c) P(X > 314)=P(X >µ+3σ)= =0.0015 d) P(X > µ)=50% 266

STANDARDIZING VALUES In order to calculate probabilities of a normal random variable, one has to determine how many standard deviations (s.d.) σ below or above the mean a value is. Example: How many s.d. Below or above the mean male foot length is 13 inches? The mean is µ=11, 13 inches is 2 inches above the mean. The s.d. is σ=1.5: It is: 2 1.5 =1.33 1.33 standard deviations above the mean z-score of the random variable (13 inches 11 inches) = +1.33 1.5 inches

We say that we have standardized the value of 13. z-score = value µ = x µ σ σ Since σ it is always positive: x above the mean -> z is positive x is below the mean -> z is negative. EXAMPLE: What is the standardized value for a foot length of 8.5 inches? z = 8.5 11 1.5 = 1.67 It is 1.67 standard deviations below the mean EXAMPLE: a man s standardized foot length is +2.5. What is his actual foot length in inches? z = x 11 1.5 = +2.5 x =11+ (2.5 1.5) =14.75 inches

Z-scores also allow us to compare values of different normal random variables: In general, women s foot length is shorter than men s. Assume that women s foot length follows a normal distribution with µ=9.5 inches and σ=1.2. Paul has a foot length of 13.25 inches Mary has a foot length of 11.6 inches Which of the two has a longer foot relative to his or her gender group? 13.25 11 Paul z = = +1.5 1.5 11.6 9.5 Mary z = = +1.75 1.2 Mary has a longer foot length relative to her gender distribution.

FINDING PROBABILITIES WITH THE NORMAL TABLE Since the normal distribution is symmetric about the mean, the curve of the z-score must be symmetric about 0, and the areas on either side of z=0 are both 0.5 0.5 Z=0 0.5 Following the s.d. Rule, most of the curve falls between z=-3 and z=+3. The normal table lists the number of s.d. a n o r m a l variable z is below or above its mean.

z.00.01.02.03.04.05.06.07.08.09-3.4.0003.0003.0003.0003.0003.0003.0003.0003.0003.0002-3.3.0005.0005.0005.0004.0004.0004.0004.0004.0004.0003-3.2.0007.0007.0006.0006.0006.0006.0006.0005.0005.0005-3.1.0010.0009.0009.0009.0008.0008.0008.0008.0007.0007-3.0.0013.0013.0013.0012.0012.0011.0011.0011.0010.0010-2.9.0019.0018.0018.0017.0016.0016.0015.0015.0014.0014-2.8.0026.0025.0024.0023.0023.0022.0021.0021.0020.0019-2.7.0035.0034.0033.0032.0031.0030.0029.0028.0027.0026-2.6.0047.0045.0044.0043.0041.0040.0039.0038.0037.0036-2.5.0062.0060.0059.0057.0055.0054.0052.0051.0049.0048-2.4.0082.0080.0078.0075.0073.0071.0069.0068.0066.0064-2.3.0107.0104.0102.0099.0096.0094.0091.0089.0087.0084-2.2.0139.0136.0132.0129.0125.0122.0119.0116.0113.0110-2.1.0179.0174.0170.0166.0162.0158.0154.0150.0146.0143-2.0.0228.0222.0217.0212.0207.0202.0197.0192.0188.0183-1.9.0287.0281.0274.0268.0262.0256.0250.0244.0239.0233-1.8.0359.0351.0344.0336.0329.0322.0314.0307.0301.0294-1.7.0446.0436.0427.0418.0409.0401.0392.0384.0375.0367-1.6.0548.0537.0526.0516.0505.0495.0485.0475.0465.0455-1.5.0668.0655.0643.0630.0618.0606.0594.0582.0571.0559-1.4.0808.0793.0778.0764.0749.0735.0721.0708.0694.0681-1.3.0968.0951.0934.0918.0901.0885.0869.0853.0838.0823-1.2.1151.1131.1112.1093.1075.1056.1038.1020.1003.0985

Normal Table 07/03/12 17:28 Ex: What is the probability of a normal random variable taking a value less than 2.8 s.d above its mean (P(Z<2.8))? -1.1.1357.1335.1314.1292.1271.1251.1230.1210.1190.1170-1.0.1587.1562.1539.1515.1492.1469.1446.1423.1401.1379 z -0.9.00.1841.01.1814.02.1788.03.1762.04.1736.05.1711.06.1685.07.1660.08.1635.09.1611 2.4-0.8.9918.9920.9922.9925.9927.9929.9931.9932.9934.9936.2119.2090.2061.2033.2005.1977.1949.1922.1894.1867 2.5-0.7.9938.9940.9941.9943.9945.9946.9948.9949.9951.9952.2420.2389.2358.2327.2296.2266.2236.2206.2177.2148 2.6-0.6.9953.9955.9956.9957.9959.9960.9961.9962.9963.9964.2743.2709.2676.2643.2611.2578.2546.2514.2483.2451 2.8-0.5.9974.9975.9976.9977.9977.9978.9979.9979.9980.9981.3085.3050.3015.2981.2946.2912.2877.2843.2810.2776 2.9-0.4.9981.9982.9982.9983.9984.9984.9985.9985.9986.9986.3446.3409.3372.3336.3300.3264.3228.3192.3156.3121 3.0-0.3.9987.9987.9987.9988.9988.9989.9989.9989.9990.9990.3821.3783.3745.3707.3669.3632.3594.3557.3520.3483 3.1-0.2.9990.9991.9991.9991.9992.9992.9992.9992.9993.9993.4207.4168.4129.4090.4052.4013.3974.3936.3897.3859-0.1.4602.4562.4522.4483.4443.4404.4364.4325.4286.4247 Ex: What is the probability of a normal random variable taking a value less -0.0.5000.4960.4920.4880.4840.4801.4761.4721.4681.4641 than 1.47 s.d below its mean (P(Z<-1.47))? z.00.01.02.03.04.05.06.07.08.09 0.0-1.6.5000.0548.5040.0537.5080.0526.5120.0516.5160.0505.5199.0495.5239.0485.5279.0475.5319.0465.5359.0455 0.1-1.5.5398.0668.5438.0655.5478.0643.5517.0630.5557.0618.5596.0606.5636.0594.5675.0582.5714.0571.5753.0559 0.2-1.4.5793.0808.5832.0793.5871.0778.5910.0764.5948.0749.5987.0735.6026.0721.6064.0708.6103.0694.6141.0681 0.3-1.3.6179.0968.6217.0951.6255.0934.6293.0918.6331.0901.6368.0885.6406.0869.6443.0853.6480.0838.6517.0823 0.4-1.2.6554.1151.6591.1131.6628.1112.6664.1093.6700.1075.6736.1056.6772.1038.6808.1020.6844.1003.6879.0985 0.5.6915.6950.6985.7019.7054.7088.7123.7157.7190.7224 0.6.7257.7291.7324.7357.7389.7422.7454.7486.7517.7549 0.7.7580.7611.7642.7673.7704.7734.7764.7794.7823.7852

Ex: What is the probability of a normal random variable taking a value more than 0.75 s.d above its mean (P(Z > 0.75))? Method 1 z.00.01.02.03.04.05.06.07.08.09 0.0.5000.5040.5080.5120.5160.5199.5239.5279.5319.5359 0.1.5398.5438.5478.5517.5557.5596.5636.5675.5714.5753 0.2.5793.5832.5871.5910.5948.5987.6026.6064.6103.6141 0.3.6179.6217.6255.6293.6331.6368.6406.6443.6480.6517 0.4.6554.6591.6628.6664.6700.6736.6772.6808.6844.6879 0.5.6915.6950.6985.7019.7054.7088.7123.7157.7190.7224 0.6.7257.7291.7324.7357.7389.7422.7454.7486.7517.7549 0.7.7580.7611.7642.7673.7704.7734.7764.7794.7823.7852 0.8.7881.7910.7939.7967.7995.8023.8051.8078.8106.8133 P(Z > 0.75) =1 P(Z < 0.75) =1 0.7734 = 0.2266

Method 2 By symmetry: P(Z > 0.75) = P(Z < -0.75) =0.2266 z -0.9.00.1841.01.1814.02.1788.03.1762.04.1736.05.1711.06.1685.07.1660.08.1635.09.1611-0.8.2119.2090.2061.2033.2005.1977.1949.1922.1894.1867-0.7.2420.2389.2358.2327.2296.2266.2236.2206.2177.2148-0.6.2743.2709.2676.2643.2611.2578.2546.2514.2483.2451-0.5.3085.3050.3015.2981.2946.2912.2877.2843.2810.2776

Ex: What is the probability of a normal random variable taking a value between 1 s.d below and 1 s.d. Above its mean P(-1 < Z < 1)? P( - 1 < Z < 1)=P(Z < 1)- P(Z < - 1)=0.8413-0.1587=0.6826-1 1