Probability Distributions. Statistics and Quantitative Analysis U4320. Probability Distributions(cont.) Probability

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Statstcs and Quanttatve Analss U430 Dstrbutons A. Dstrbutons: How do smple probablt tables relate to dstrbutons?. What s the of gettng a head? ( con toss) Prob. Segment 4: Dstrbutons, Unvarate & Bvarate / Prof. Sharn O Halloran 0 Proporton of Heads. ow sa we flp the con twce. The pcture now looks lke: As number of con tosses ncreases, the dstrbuton looks lke a bell-shaped curve: / /4 0 / Proporton of Heads 0 head s head heads 0 / Proporton of Heads

3. General: ormal Dstrbuton dstrbutons are dealzed bar graphs or hstograms. As we get more and more tosses, the probablt of an one observaton falls to zero. Thus, the fnal result s a bell-shaped curve B. Propertes of a ormal Dstrbuton. Formulas: Mean and Varance Mean Varance Populaton X µ = = ( X µ ) σ = = X s Sample n X = = n n ( X X ) = = n. ote Dfference wth the Book The populaton mean s wrtten as: µ p( ), Varance as:. ote Dfference wth the Book (cont.) So the average, or epected, number of heads n two tosses of a con s: 0*/4 + */ + */4 =. σ ( µ ) p( ). Eample: Two tosses of a con umber of Heads p() 0 /4 / /4

3. Epected Value E() = Average or Mean [ ( ) ] E µ = Epected Varance C. Standard ormal Dstrbuton.Defnton: a normal dstrbuton wth mean 0 and standard devaton. Total Area of Curve = - Are ponts on the -as that show how man standard devatons σ= that pont s awa from the mean m. C. Standard ormal Dstrbuton. Characterstcs smmetrc Unmodal. contnuous dstrbutons 3. Eample: Heght of people are normall dstrbuted wth mean 5'7" D. How to Calculate Z-scores Defnton: Z-value s the number of standard devatons awa from the mean Defnton: Z-tables gve the probablt (score) of observng a partcular z-value. Total Area of Curve = area=/ What s the proporton of people taller than 5'7"? 5'7" =µ 3

. What s the area under the curve that s greater than? Prob (Z>) The entr n the table s 0.59, whch s the total area to the rght of.. What s the area to the rght of.64? Prob (Z >.64) The table gves 0.05, or about 5%. Total Area of Curve = Total Area of Curve = 0.59 0.05 z=.64 3. What s the area to the left of -.64? Prob (Z < -.64) 4. What s the probablt that an observaton les between 0 and? Prob (0 < Z < ) Total Area of Curve = 0.50 0.05 0.34 0.59 -.64.00 4

5. How would ou fgure out the area between and.5 on the graph? Prob ( < Z <.5) 0.59 6. What s the area between - and? Prob (- < Z < ) P (-<Z<0) =.34 P (0<z<) =.50-.03 =.477 0.477 + 0.34 =.88 0.09 0.067 0.59 0.34 0.477.00.50 0.03 -.00.00 7. What s the area between - and? Prob(-<Z<) - Prob (Z< -) - Prob (Z>) = -.03 -.03 =.954 E. Standardzaton. Standard ormal Dstrbuton -- s a ver specal case where the mean of dstrbuton equals 0 and the standard devaton equals. 0.03 0.03 -.00.00 σ=.00 σ=.00 5

. Case : Standard devaton dffers from For a normal dstrbuton wth mean 0 and some standard devaton, ou can convert an pont to the standard normal dstrbuton b changng t to /. SD= 3. Case : Mean dffers from 0 So startng wth an normal dstrbuton wth mean and standard devaton, ou can convert to a standard normal b takng - and usng ths as our Z-value. ow, what would be the area under the graph between 50 and 5? Prob (0<Z<) =.34 SD=3 SD= -.00' -.00.00.00' 5 =5 4. General Case: Mean not equal to 0 and SD not equal to Sa ou have a normal dstrbuton wth mean & standard devaton. You can convert an pont n that dstrbuton to the same pont n the standard normal b computng Z = µ σ. Ths s called standardzaton. The Z-value corresponds to. The Z-table lets ou look up the Z-Score of an number. 5. Trout Eample: a. The lengths of trout caught n a lake are normall dstrbuted wth mean 9.5" and standard devaton.4". There s a law that ou can't keep an fsh below ". What percent of the trout s ths? (Can keep above ) Step : Standardze Fnd the Z-score of : Prob (>) - 9.5 Z = --------- =.79..4 Step : Fnd z-score Fnd Prob (Z>.79) Look up.79 n our table; onl.037, or about 4% of the fsh could be kept. 6

5. Trout Eample (cont.): b. ow the're thnkng of changng the standard to 0" nstead of ". What proporton of fsh could be kept under the new lmt? Standardze Prob (>0) 0-9.5 Z = --------- = 0.36..4 Step : Fnd z-score Prob (Z>.36) In our tables, ths gves.359, or almost 36% of the fsh could be kept under the new law. Jont Dstrbutons A. Tables. Eample: Toss a con 3 tmes. How man heads and how man runs do we observe? Def: A run s a sequence of one or more of the same event n a row Possble outcomes Toss Heads Runs TTT /8 0 TTH /8 THT /8 3 THH /8 HTT /8 HTH /8 3 HHT /8 HHH /8 3 Jont Dstrbutons (cont.). Jont Dstrbuton Table Runs Heads 3 0 /8 0 0 /8 0 /4 (/8) /8 3/8 0 /4 (/8) /8 3/8 3 /8 0 0 /8 /4 / /4 Jont Dstrbutons (cont.) 3. Defnton: The jont probablt of and s the probablt that both and occur. p(,) = Pr(X and Y) p(0, ) = /8, p(, ) = /4, and p(3, 3) = 0. 7

Jont Dstrbutons (cont.) B. Margnal Probabltes. Def: Margnal probablt s the sum of the rows and columns. The overall probablt of an event occurrng. p( ) = p(, ). So the probablt that there are just head s the prob of head and runs + head and runs + head and 3 runs = 0 + /4 + /8 = 3/8 Jont Dstrbutons (cont.) C. Independence A and B are ndependent f P(A B) = P(A). P( A& B) P( A B) = ; P( B) P( A) = P( A B), P( A, B) = P ( A) P ( B). Jont Dstrbutons (cont.) Are the # of heads and the # of runs ndependent? # Runs # heads 3 marg dst 0 /8 3/8 3/8 3 /8 marg dst /4 / /4 Correlaton and A..Defnton of Whch s defned as the epected value of the product of the dfferences from the means. σ, = E ( X µ )( Y µ Y ) = = ( X µ )( Y µ ) Y = ( X µ )( Y µ ) p(, ). Y 8

Correlaton and.graph Correlaton and B. Correlaton.Defnton of Correlaton ρ σ, = = σ σ SD * SD Correlaton and. Characterstcs of Correlaton - ρ f ρ = then Correlaton and. Characterstcs of Correlaton (cont.) f ρ = - 9

Correlaton and. Characterstcs of Correlaton (cont.) Correlaton and. Characterstcs of Correlaton (cont.) Wh? f ρ = 0 σ, ρ = = σ σ n ( µ )( µ ) ( µ ) ( µ ) = = n 0