In: Economics
Given a normal distribution with μ=103 and σ=25, and given you select a sample of n=25, complete parts (a) through (d).
What is the probability that X is between 91 and 93.5?
P(91<X<93.5)=
The most popular theoretical probability distribution used to deal with continuous variables is normal distribution.
Total area under a normal curve represents total probability. As normal distribution is a probability density function, total probability is equal to unity. Hence, the total area under the normal curve is taken as '1'.
Important properties of a normal distribution
1. Normal curve is bell shaped.
2. All odd central moments of the distribution are equal to zero.
3. Mean = median = mode.
4. It is a uni - modal distribution.
are the two parameters of normal distribution. For different data, values of mu (arithmetic mean)and sigma (standard deviation)will be different.
A standardised form of normal distribution by taking mu = 0 and sigma = 1 is called standard normal distribution. While, the normal variable is usually denoted as 'x', the standard normal variable is denoted as 'z'.
A normal curve with arithmetic mean = and standard deviation = can be converted into a standard normal curve by changing both origin and scale.
The formula used to convert the normal variable, 'x' into the standard normal variable, 'z' is given as ,
z =( x- ) /
In the given question, = 103, = 25.
P(91< x < 93.5) =?
Let , X = 91, Let, X = 93.5,
Z = ( x- ) / Z = ( x- ) /
=( 91 - 103) / 25 = (93.5 - 103) / 25
= - 12 /25 = -9.5 /25
= -.48 = -.38
P(z < -.48) = .1844 P(z <-.38) = .1480
ie; P(-.48 < X < -.38 ) = .1844 - .1480
= .0364
= 3.64 %