Question

In: Statistics and Probability

(12.5) Describe the procedure to determine the percent of data between any two values in a...

(12.5) Describe the procedure to determine the percent of data between any two values in a normal distribution.

Solutions

Expert Solution

Finding the percentage: In order to compute percentages under a normal distribution, you need to standartize every given value

=>For example, to find P(x < b) under the normal distribution N(µ, σ), you first standartize b to b−µ /σ .

=>Then you need to find P(z < b−µ /σ ). Look up the value of b−µ/ σ in table A (“Standard normal probabilities”).

=>The corresponding number in the table is the required proportion. To convert to percentages, multiply by 10

=> To find other proportions, we use geometric facts that P(a < z < b) = P(z < b) − P(z < a) (see the picture) and P(z > a) = 1 − P(z < a).

=>Example, continued. Consider the normal distribution N(100, 10).

=>To find P(97.1 < x < 105.3), standartize first: P(97.1 < x < 105.3) = P 97.1 − 100 10 < z < 105.3 − 100 10 = P(−0.29 < z < 0.53)

=> Then P(−0.29 < z < 0.53) = P(z < 0.53) − P(z < −0.29).

=>The last two proportions can be found in Table A: P(z < 0.53) = .7019 and P(z < −0.29) = .3859 (row −0.2, column 0.09).

=>Thus P(97.1 < x < 105.3) = .7019 − .3859 = .3160 or 31.6%.

From percentages to values:

=>There is another kind of problems: given a percentage, find the corresponding boundary value.

=>For example, given the percentage P(x < b) = P, what is b? Here to find b, we look up P or the value closest to P in the table and find the corresponding z-score.

=>Then, we need to solve z = b−µ σ for b. Algebra shows that b = zσ + µ. Example, continued. Consider the normal distribution N(100, 10).

=>What values lie in the lower 80% of the data? We need to find b such P(x < b) = 80%. First we find the z-score Z such that P(z < Z) = 80%.

=>The table does not contain 0.8; the closest number is 0.7995. It lies in the row 0.8 and column 0.04. Thus the z-score of b is approximately 0.84: 0.84 = b − 100/ 10 .

Hence b − 100 = 0.84 × 10 = 8.4 and b = 100 + 8.4 = 108.4. We conclude that the lower 80% of this distribution is formed by values below 108.4


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