This document provides an overview of Chapter 5 from the textbook, which covers normal probability distributions. Section 5.1 introduces normal distributions and the standard normal distribution, including their key properties and how to interpret related graphs. It describes how any normal distribution can be transformed into a standard normal distribution for calculation purposes. Section 5.1 also shows how to find areas under the standard normal curve using the standard normal table. Section 5.2 discusses how to calculate probabilities for normally distributed variables by relating them to areas under the normal curve. It provides examples of finding probabilities and expected values.
Chapter 5 part1- The Sampling Distribution of a Sample Meannszakir
Mathematics, Statistics, Population Distribution vs. Sampling Distribution, The Mean and Standard Deviation of the Sample Mean, Sampling Distribution of a Sample Mean, Central Limit Theorem
Chapter 5 part1- The Sampling Distribution of a Sample Meannszakir
Mathematics, Statistics, Population Distribution vs. Sampling Distribution, The Mean and Standard Deviation of the Sample Mean, Sampling Distribution of a Sample Mean, Central Limit Theorem
The Normal Distribution is a symmetrical probability distribution where most results are located in the middle and few are spread on both sides. It has the shape of a bell and can entirely be described by its mean and standard deviation.
TOPIC OUTLINE: 1. The Normal Curve
a. Definition/Description
b. Area Under Normal Curve
2. Standard Scores
a. Z-Scores
b. T-Scores
c. Other Standard Scores
Karl Friedrich Gauss:
one of the scientist that developed the concept of normal curve.
Normal Curve
is a continuous probability distribution in statistics
Karl Pearson:
first to refer to the curve as “Normal Curve”
Asymptotic:
approaching the x-axis but never touches it
Symmetric:
made up of exactly similar parts facing each other
STANDARD SCORES
-is a raw score that has been converted from one scale to another scale.
Z-scores
called a zero plus or minus one scale
Scores can be positive and negative
T-Scores
a none of the scores is negative. It can be called a 50 plus or minus ten scale. ( 50 mean set and 10 SD set )
Stanine: Standard Nine
(STAndard NINE) is a method of scaling test scores on a nine-point standard scale with a mean of five and a standard deviation of two.
The Normal Distribution is a symmetrical probability distribution where most results are located in the middle and few are spread on both sides. It has the shape of a bell and can entirely be described by its mean and standard deviation.
TOPIC OUTLINE: 1. The Normal Curve
a. Definition/Description
b. Area Under Normal Curve
2. Standard Scores
a. Z-Scores
b. T-Scores
c. Other Standard Scores
Karl Friedrich Gauss:
one of the scientist that developed the concept of normal curve.
Normal Curve
is a continuous probability distribution in statistics
Karl Pearson:
first to refer to the curve as “Normal Curve”
Asymptotic:
approaching the x-axis but never touches it
Symmetric:
made up of exactly similar parts facing each other
STANDARD SCORES
-is a raw score that has been converted from one scale to another scale.
Z-scores
called a zero plus or minus one scale
Scores can be positive and negative
T-Scores
a none of the scores is negative. It can be called a 50 plus or minus ten scale. ( 50 mean set and 10 SD set )
Stanine: Standard Nine
(STAndard NINE) is a method of scaling test scores on a nine-point standard scale with a mean of five and a standard deviation of two.
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
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Normal distribution and sampling distribution
1. Chapter 5 Normal Probability Distributions 1 Larson/Farber 4th ed
2. Chapter Outline 5.1 Introduction to Normal Distributions and the Standard Normal Distribution 5.2 Normal Distributions: Finding Probabilities 5.3 Normal Distributions: Finding Values 5.4 Sampling Distributions and the Central Limit Theorem 5.5 Normal Approximations to Binomial Distributions 2 Larson/Farber 4th ed
4. Section 5.1 Objectives Interpret graphs of normal probability distributions Find areas under the standard normal curve 4 Larson/Farber 4th ed
5. Properties of a Normal Distribution Continuous random variable Has an infinite number of possible values that can be represented by an interval on the number line. Continuous probability distribution The probability distribution of a continuous random variable. Hours spent studying in a day 0 6 3 9 15 12 18 24 21 The time spent studying can be any number between 0 and 24. 5 Larson/Farber 4th ed
6. Properties of Normal Distributions Normal distribution A continuous probability distribution for a random variable, x. The most important continuous probability distribution in statistics. The graph of a normal distribution is called the normal curve. x 6 Larson/Farber 4th ed
7. Properties of Normal Distributions The mean, median, and mode are equal. The normal curve is bell-shaped and symmetric about the mean. The total area under the curve is equal to one. The normal curve approaches, but never touches the x-axis as it extends farther and farther away from the mean. Total area = 1 x μ 7 Larson/Farber 4th ed
8. Properties of Normal Distributions Between μ – σ and μ + σ (in the center of the curve), the graph curves downward. The graph curves upward to the left of μ – σ and to the right of μ + σ. The points at which the curve changes from curving upward to curving downward are called the inflection points. Inflection points x μ+ σ μ μ+ 2σ μ+ 3σ μ 3σ μ 2σ μ σ 8 Larson/Farber 4th ed
9. Means and Standard Deviations A normal distribution can have any mean and any positive standard deviation. The mean gives the location of the line of symmetry. The standard deviation describes the spread of the data. μ = 3.5 σ = 1.5 μ = 3.5 σ = 0.7 μ = 1.5 σ = 0.7 9 Larson/Farber 4th ed
10. Example: Understanding Mean and Standard Deviation Which curve has the greater mean? Solution: Curve A has the greater mean (The line of symmetry of curve A occurs at x = 15. The line of symmetry of curve B occurs at x = 12.) 10 Larson/Farber 4th ed
11. Example: Understanding Mean and Standard Deviation Which curve has the greater standard deviation? Solution: Curve B has the greater standard deviation (Curve B is more spread out than curve A.) 11 Larson/Farber 4th ed
12. Example: Interpreting Graphs The heights of fully grown white oak trees are normally distributed. The curve represents the distribution. What is the mean height of a fully grown white oak tree? Estimate the standard deviation. Solution: σ = 3.5 (The inflection points are one standard deviation away from the mean) μ = 90 (A normal curve is symmetric about the mean) 12 Larson/Farber 4th ed
13.
14.
15. Properties of the Standard Normal Distribution z 1 0 2 3 3 2 1 z = 3.49 The cumulative area is close to 0 for z-scores close to z = 3.49. The cumulative area increases as the z-scores increase. Area is close to 0 15 Larson/Farber 4th ed
16. Properties of the Standard Normal Distribution Area is close to 1 z 1 0 2 3 3 2 1 z = 3.49 z = 0 Area is 0.5000 The cumulative area for z = 0 is 0.5000. The cumulative area is close to 1 for z-scores close to z = 3.49. 16 Larson/Farber 4th ed
17. Example: Using The Standard Normal Table Find the cumulative area that corresponds to a z-score of 1.15. Solution: Find 1.1 in the left hand column. Move across the row to the column under 0.05 The area to the left of z = 1.15 is 0.8749. 17 Larson/Farber 4th ed
18. Example: Using The Standard Normal Table Find the cumulative area that corresponds to a z-score of -0.24. Solution: Find -0.2 in the left hand column. Move across the row to the column under 0.04 The area to the left of z = -0.24 is 0.4052. 18 Larson/Farber 4th ed
19. Finding Areas Under the Standard Normal Curve Sketch the standard normal curve and shade the appropriate area under the curve. Find the area by following the directions for each case shown. To find the area to the left of z, find the area that corresponds to z in the Standard Normal Table. The area to the left of z = 1.23 is 0.8907 Use the table to find the area for the z-score 19 Larson/Farber 4th ed
20. Finding Areas Under the Standard Normal Curve Subtract to find the area to the right of z = 1.23: 1 0.8907 = 0.1093. Use the table to find the area for the z-score. To find the area to the right of z, use the Standard Normal Table to find the area that corresponds to z. Then subtract the area from 1. The area to the left of z = 1.23 is 0.8907. 20 Larson/Farber 4th ed
21. Finding Areas Under the Standard Normal Curve Subtract to find the area of the region between the two z-scores: 0.8907 0.2266 = 0.6641. The area to the left of z = 1.23 is 0.8907. The area to the left of z = 0.75 is 0.2266. Use the table to find the area for the z-scores. To find the area between two z-scores, find the area corresponding to each z-score in the Standard Normal Table. Then subtract the smaller area from the larger area. 21 Larson/Farber 4th ed
22. Example: Finding Area Under the Standard Normal Curve Find the area under the standard normal curve to the left of z = -0.99. Solution: 0.1611 z 0.99 0 From the Standard Normal Table, the area is equal to 0.1611. 22 Larson/Farber 4th ed
23. Example: Finding Area Under the Standard Normal Curve 1 0.8554 = 0.1446 z 1.06 0 Find the area under the standard normal curve to the right of z = 1.06. Solution: 0.8554 From the Standard Normal Table, the area is equal to 0.1446. 23 Larson/Farber 4th ed
24. Example: Finding Area Under the Standard Normal Curve 0.8944 0.0668 = 0.8276 z 1.50 1.25 0 Find the area under the standard normal curve between z = 1.5 and z = 1.25. Solution: 0.0668 0.8944 From the Standard Normal Table, the area is equal to 0.8276. 24 Larson/Farber 4th ed
25. Section 5.1 Summary Interpreted graphs of normal probability distributions Found areas under the standard normal curve 25 Larson/Farber 4th ed
26. Section 5.2 Normal Distributions: Finding Probabilities 26 Larson/Farber 4th ed
27. Section 5.2 Objectives Find probabilities for normally distributed variables 27 Larson/Farber 4th ed
28. Probability and Normal Distributions μ = 500 σ = 100 P(x < 600) = Area x 600 μ =500 If a random variable x is normally distributed, you can find the probability that x will fall in a given interval by calculating the area under the normal curve for that interval. 28 Larson/Farber 4th ed
29. Probability and Normal Distributions Normal Distribution Standard Normal Distribution μ = 500 σ = 100 μ = 0 σ = 1 P(x < 600) P(z < 1) z x Same Area 600 μ =500 1 μ = 0 P(x < 500) = P(z < 1) 29 Larson/Farber 4th ed
30. Example: Finding Probabilities for Normal Distributions A survey indicates that people use their computers an average of 2.4 years before upgrading to a new machine. The standard deviation is 0.5 year. A computer owner is selected at random. Find the probability that he or she will use it for fewer than 2 years before upgrading. Assume that the variable x is normally distributed. 30 Larson/Farber 4th ed
31. Solution: Finding Probabilities for Normal Distributions Normal Distribution Standard Normal Distribution μ = 2.4 σ = 0.5 μ = 0 σ = 1 P(z < -0.80) P(x < 2) 0.2119 z x 2 2.4 -0.80 0 P(x < 2) = P(z < -0.80) = 0.2119 31 Larson/Farber 4th ed
32. Example: Finding Probabilities for Normal Distributions A survey indicates that for each trip to the supermarket, a shopper spends an average of 45 minutes with a standard deviation of 12 minutes in the store. The length of time spent in the store is normally distributed and is represented by the variable x. A shopper enters the store. Find the probability that the shopper will be in the store for between 24 and 54 minutes. 32 Larson/Farber 4th ed
33. Solution: Finding Probabilities for Normal Distributions P(-1.75 < z < 0.75) P(24 < x < 54) x z 24 45 -1.75 0 Normal Distributionμ = 45 σ = 12 Standard Normal Distributionμ = 0 σ = 1 0.0401 0.7734 0.75 54 P(24 < x < 54) = P(-1.75 < z < 0.75) = 0.7734 – 0.0401 = 0.7333 33 Larson/Farber 4th ed
34. Example: Finding Probabilities for Normal Distributions Find the probability that the shopper will be in the store more than 39 minutes. (Recall μ = 45 minutes and σ = 12 minutes) 34 Larson/Farber 4th ed
35. Solution: Finding Probabilities for Normal Distributions P(z > -0.50) P(x > 39) x z 39 45 0 Normal Distributionμ = 45 σ = 12 Standard Normal Distributionμ = 0 σ = 1 0.3085 -0.50 P(x > 39) = P(z > -0.50) = 1– 0.3085 = 0.6915 35 Larson/Farber 4th ed
36. Example: Finding Probabilities for Normal Distributions If 200 shoppers enter the store, how many shoppers would you expect to be in the store more than 39 minutes? Solution: Recall P(x > 39) = 0.6915 200(0.6915) =138.3 (or about 138) shoppers 36 Larson/Farber 4th ed
37. Example: Using Technology to find Normal Probabilities Assume that cholesterol levels of men in the United States are normally distributed, with a mean of 215 milligrams per deciliter and a standard deviation of 25 milligrams per deciliter. You randomly select a man from the United States. What is the probability that his cholesterol level is less than 175? Use a technology tool to find the probability. 37 Larson/Farber 4th ed
38. Solution: Using Technology to find Normal Probabilities Must specify the mean, standard deviation, and the x-value(s) that determine the interval. 38 Larson/Farber 4th ed
39. Section 5.2 Summary Found probabilities for normally distributed variables 39 Larson/Farber 4th ed
40. Section 5.3 Normal Distributions: Finding Values 40 Larson/Farber 4th ed
41. Section 5.3 Objectives Find a z-score given the area under the normal curve Transform a z-score to an x-value Find a specific data value of a normal distribution given the probability 41 Larson/Farber 4th ed
42. Finding values Given a Probability In section 5.2 we were given a normally distributed random variable x and we were asked to find a probability. In this section, we will be given a probability and we will be asked to find the value of the random variable x. 5.2 probability x z 5.3 42 Larson/Farber 4th ed
43. Example: Finding a z-Score Given an Area Find the z-score that corresponds to a cumulative area of 0.3632. Solution: 0.3632 z z 0 43 Larson/Farber 4th ed
44.
45. Example: Finding a z-Score Given an Area Find the z-score that has 10.75% of the distribution’s area to its right. Solution: 1 – 0.1075 = 0.8925 0.1075 z z 0 Because the area to the right is 0.1075, the cumulative area is 0.8925. 45 Larson/Farber 4th ed
46.
47. Example: Finding a z-Score Given a Percentile 0.05 z z 0 Find the z-score that corresponds to P5. Solution: The z-score that corresponds to P5 is the same z-score that corresponds to an area of 0.05. The areas closest to 0.05 in the table are 0.0495 (z = -1.65) and 0.0505 (z = -1.64). Because 0.05 is halfway between the two areas in the table, use the z-score that is halfway between -1.64 and -1.65. The z-score is -1.645. 47 Larson/Farber 4th ed
48. Transforming a z-Score to an x-Score To transform a standard z-score to a data value x in a given population, use the formula x = μ + zσ 48 Larson/Farber 4th ed
49.
50. z = -2.33: x = 67 + (-2.33)(4) = 57.68 miles per hour
51. z = 0: x = 67 + 0(4) = 67 miles per hourNotice 74.84 mph is above the mean, 57.68 mph is below the mean, and 67 mph is equal to the mean. 49 Larson/Farber 4th ed
52. Example: Finding a Specific Data Value 5% x ? 75 Scores for a civil service exam are normally distributed, with a mean of 75 and a standard deviation of 6.5. To be eligible for civil service employment, you must score in the top 5%. What is the lowest score you can earn and still be eligible for employment? Solution: An exam score in the top 5% is any score above the 95th percentile. Find the z-score that corresponds to a cumulative area of 0.95. 1 – 0.05 = 0.95 z ? 0 50 Larson/Farber 4th ed
53. Solution: Finding a Specific Data Value 5% x ? 75 From the Standard Normal Table, the areas closest to 0.95 are 0.9495 (z = 1.64) and 0.9505 (z = 1.65). Because 0.95 is halfway between the two areas in the table, use the z-score that is halfway between 1.64 and 1.65. That is, z = 1.645. z 1.645 0 51 Larson/Farber 4th ed
54. Solution: Finding a Specific Data Value 5% x 85.69 75 Using the equation x = μ + zσ x = 75 + 1.645(6.5) ≈ 85.69 z 1.645 0 The lowest score you can earn and still be eligible for employment is 86. 52 Larson/Farber 4th ed
55. Section 5.3 Summary Found a z-score given the area under the normal curve Transformed a z-score to an x-value Found a specific data value of a normal distribution given the probability 53 Larson/Farber 4th ed
56. Section 5.4 Sampling Distributions and the Central Limit Theorem 54 Larson/Farber 4th ed
57. Section 5.4 Objectives Find sampling distributions and verify their properties Interpret the Central Limit Theorem Apply the Central Limit Theorem to find the probability of a sample mean 55 Larson/Farber 4th ed
58. Sampling Distributions Sampling distribution The probability distribution of a sample statistic. Formed when samples of size n are repeatedly taken from a population. e.g. Sampling distribution of sample means 56 Larson/Farber 4th ed
59. Sampling Distribution of Sample Means Population with μ, σ Sample 3 The sampling distribution consists of the values of the sample means, Sample 1 Sample 2 Sample 4 Sample 5 57 Larson/Farber 4th ed
60.
61. Example: Sampling Distribution of Sample Means The population values {1, 3, 5, 7} are written on slips of paper and put in a box. Two slips of paper are randomly selected, with replacement. Find the mean, variance, and standard deviation of the population. Solution: 59 Larson/Farber 4th ed
62. Example: Sampling Distribution of Sample Means Probability Histogram of Population of x P(x) 0.25 Probability x 1 3 5 7 Population values Graph the probability histogram for the population values. Solution: All values have the same probability of being selected (uniform distribution) 60 Larson/Farber 4th ed
63. Example: Sampling Distribution of Sample Means List all the possible samples of size n = 2 and calculate the mean of each sample. Solution: Sample Sample 1 1, 1 3 5, 1 These means form the sampling distribution of sample means. 2 1, 3 4 5, 3 3 1, 5 5 5, 5 4 1, 7 6 5, 7 2 3, 1 4 7, 1 3 3, 3 5 7, 3 4 3, 5 6 7, 5 5 3, 7 7 7, 7 61 Larson/Farber 4th ed
64. Example: Sampling Distribution of Sample Means Construct the probability distribution of the sample means. Solution: f Probability 62 Larson/Farber 4th ed
65. Example: Sampling Distribution of Sample Means Find the mean, variance, and standard deviation of the sampling distribution of the sample means. Solution: The mean, variance, and standard deviation of the 16 sample means are: These results satisfy the properties of sampling distributions of sample means. 63 Larson/Farber 4th ed
66. Example: Sampling Distribution of Sample Means Probability Histogram of Sampling Distribution of P(x) 0.25 0.20 Probability 0.15 0.10 0.05 4 3 2 5 6 7 Sample mean Graph the probability histogram for the sampling distribution of the sample means. Solution: The shape of the graph is symmetric and bell shaped. It approximates a normal distribution. 64 Larson/Farber 4th ed
67. The Central Limit Theorem x x If samples of size n 30, are drawn from any population with mean = and standard deviation = , then the sampling distribution of the sample means approximates a normal distribution. The greater the sample size, the better the approximation. 65 Larson/Farber 4th ed
68. The Central Limit Theorem x x If the population itself is normally distributed, the sampling distribution of the sample means is normally distribution for any sample size n. 66 Larson/Farber 4th ed
69. The Central Limit Theorem In either case, the sampling distribution of sample means has a mean equal to the population mean. The sampling distribution of sample means has a variance equal to 1/n times the variance of the population and a standard deviation equal to the population standard deviation divided by the square root of n. Variance Standard deviation (standard error of the mean) 67 Larson/Farber 4th ed
70. The Central Limit Theorem Any Population Distribution Normal Population Distribution Distribution of Sample Means, n ≥ 30 Distribution of Sample Means, (any n) 68 Larson/Farber 4th ed
71. Example: Interpreting the Central Limit Theorem Phone bills for residents of a city have a mean of $64 and a standard deviation of $9. Random samples of 36 phone bills are drawn from this population and the mean of each sample is determined. Find the mean and standard error of the mean of the sampling distribution. Then sketch a graph of the sampling distribution of sample means. 69 Larson/Farber 4th ed
72. Solution: Interpreting the Central Limit Theorem The mean of the sampling distribution is equal to the population mean The standard error of the mean is equal to the population standard deviation divided by the square root of n. 70 Larson/Farber 4th ed
73. Solution: Interpreting the Central Limit Theorem Since the sample size is greater than 30, the sampling distribution can be approximated by a normal distribution with 71 Larson/Farber 4th ed
74. Example: Interpreting the Central Limit Theorem The heights of fully grown white oak trees are normally distributed, with a mean of 90 feet and standard deviation of 3.5 feet. Random samples of size 4 are drawn from this population, and the mean of each sample is determined. Find the mean and standard error of the mean of the sampling distribution. Then sketch a graph of the sampling distribution of sample means. 72 Larson/Farber 4th ed
75. Solution: Interpreting the Central Limit Theorem The mean of the sampling distribution is equal to the population mean The standard error of the mean is equal to the population standard deviation divided by the square root of n. 73 Larson/Farber 4th ed
76. Solution: Interpreting the Central Limit Theorem Since the population is normally distributed, the sampling distribution of the sample means is also normally distributed. 74 Larson/Farber 4th ed
77. Probability and the Central Limit Theorem To transform x to a z-score 75 Larson/Farber 4th ed
78. Example: Probabilities for Sampling Distributions The graph shows the length of time people spend driving each day. You randomly select 50 drivers age 15 to 19. What is the probability that the mean time they spend driving each day is between 24.7 and 25.5 minutes? Assume that σ = 1.5 minutes. 76 Larson/Farber 4th ed
79. Solution: Probabilities for Sampling Distributions From the Central Limit Theorem (sample size is greater than 30), the sampling distribution of sample means is approximately normal with 77 Larson/Farber 4th ed
80. Solution: Probabilities for Sampling Distributions P(-1.41 < z < 2.36) P(24.7 < x < 25.5) x z 24.7 25 -1.41 0 Normal Distributionμ = 25 σ = 0.21213 Standard Normal Distributionμ = 0 σ = 1 0.9909 0.0793 2.36 25.5 78 Larson/Farber 4th ed P(24 < x < 54) = P(-1.41 < z < 2.36) = 0.9909 – 0.0793 = 0.9116
81. Example: Probabilities for x and x A bank auditor claims that credit card balances are normally distributed, with a mean of $2870 and a standard deviation of $900. What is the probability that a randomly selected credit card holder has a credit card balance less than $2500? Solution: You are asked to find the probability associated with a certain value of the random variable x. 79 Larson/Farber 4th ed
82. Solution: Probabilities for x and x P(x < 2500) P(z < -0.41) x z 2500 2870 -0.41 0 Normal Distributionμ = 2870 σ = 900 Standard Normal Distributionμ = 0 σ = 1 0.3409 P( x < 2500) = P(z < -0.41) = 0.3409 80 Larson/Farber 4th ed
83. Example: Probabilities for x and x You randomly select 25 credit card holders. What is the probability that their mean credit card balance is less than $2500? Solution: You are asked to find the probability associated with a sample mean . 81 Larson/Farber 4th ed
84. P(x < 2500) z x -2.06 Solution: Probabilities for x and x 2500 2870 Standard Normal Distributionμ = 0 σ = 1 Normal Distributionμ = 2870 σ = 180 P(z < -2.06) 0.0197 0 P( x < 2500) = P(z < -2.06) = 0.0197 82 Larson/Farber 4th ed
85. Solution: Probabilities for x and x There is a 34% chance that an individual will have a balance less than $2500. There is only a 2% chance that the mean of a sample of 25 will have a balance less than $2500 (unusual event). It is possible that the sample is unusual or it is possible that the auditor’s claim that the mean is $2870 is incorrect. 83 Larson/Farber 4th ed
86. Section 5.4 Summary Found sampling distributions and verify their properties Interpreted the Central Limit Theorem Applied the Central Limit Theorem to find the probability of a sample mean 84 Larson/Farber 4th ed
87. Section 5.5 Normal Approximations to Binomial Distributions 85 Larson/Farber 4th ed
88. Section 5.5 Objectives Determine when the normal distribution can approximate the binomial distribution Find the correction for continuity Use the normal distribution to approximate binomial probabilities 86 Larson/Farber 4th ed
89.
90.
91. Example: Approximating the Binomial Decide whether you can use the normal distribution to approximate x, the number of people who reply yes. If you can, find the mean and standard deviation. Fifty-one percent of adults in the U.S. whose New Year’s resolution was to exercise more achieved their resolution. You randomly select 65 adults in the U.S. whose resolution was to exercise more and ask each if he or she achieved that resolution. 89 Larson/Farber 4th ed
92. Solution: Approximating the Binomial You can use the normal approximation n = 65, p = 0.51, q = 0.49 np = (65)(0.51) = 33.15 ≥ 5 nq = (65)(0.49) = 31.85 ≥ 5 Mean: μ = np = 33.15 Standard Deviation: 90 Larson/Farber 4th ed
93. Example: Approximating the Binomial Decide whether you can use the normal distribution to approximate x, the number of people who reply yes. If you can find, find the mean and standard deviation. Fifteen percent of adults in the U.S. do not make New Year’s resolutions. You randomly select 15 adults in the U.S. and ask each if he or she made a New Year’s resolution. 91 Larson/Farber 4th ed
94. Solution: Approximating the Binomial You cannot use the normal approximation n = 15, p = 0.15, q = 0.85 np = (15)(0.15) = 2.25 < 5 nq = (15)(0.85) = 12.75 ≥ 5 Because np < 5, you cannot use the normal distribution to approximate the distribution of x. 92 Larson/Farber 4th ed
95. Correction for Continuity The binomial distribution is discrete and can be represented by a probability histogram. To calculate exact binomial probabilities, the binomial formula is used for each value of x and the results are added. Geometrically this corresponds to adding the areas of bars in the probability histogram. 93 Larson/Farber 4th ed
96. Correction for Continuity When you use a continuous normal distribution to approximate a binomial probability, you need to move 0.5 unit to the left and right of the midpoint to include all possible x-values in the interval (correction for continuity). Exact binomial probability Normal approximation P(x = c) P(c – 0.5 < x < c + 0.5) c c c+ 0.5 c– 0.5 94 Larson/Farber 4th ed
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98. The corresponding interval for the continuous normal distribution is269.5 < x < 310.5 95 Larson/Farber 4th ed
103. Using the Normal Distribution to Approximate Binomial Probabilities In Words In Symbols Verify that the binomial distribution applies. Determine if you can use the normal distribution to approximate x, the binomial variable. Find the mean and standard deviation for the distribution. Specify n, p, and q. Is np 5?Is nq 5? 98 Larson/Farber 4th ed
104. Using the Normal Distribution to Approximate Binomial Probabilities In Words In Symbols Apply the appropriate continuity correction. Shade the corresponding area under the normal curve. Find the corresponding z-score(s). Find the probability. Add or subtract 0.5 from endpoints. Use the Standard Normal Table. 99 Larson/Farber 4th ed
105.
106. Solution: Approximating a Binomial Probability Apply the continuity correction: Fewer than 40 (…37, 38, 39) corresponds to the continuous normal distribution interval x < 39.5 Normal Distribution μ = 33.15 σ = 4.03 Standard Normal μ = 0 σ = 1 P(z < 1.58) P(x < 39.5) x z 39.5 μ =33.15 1.58 μ =0 0.9429 P(z < 1.58) = 0.9429 101 Larson/Farber 4th ed
107.
108. Apply the continuity correction: Exactly 176 corresponds to the continuous normal distribution interval 175.5 < x < 176.5 Solution: Approximating a Binomial Probability Normal Distribution μ = 172 σ = 4.91 Standard Normal μ = 0 σ = 1 P(175.5 < x < 176.5) P(0.71 < z < 0.92) x 176.5 μ =172 z 0.7611 0.8212 0.92 μ =0 0.71 175.5 P(0.71 < z < 0.92) = 0.8212 – 0.7611 = 0.0601 103 Larson/Farber 4th ed
109. Section 5.5 Summary Determined when the normal distribution can approximate the binomial distribution Found the correction for continuity Used the normal distribution to approximate binomial probabilities 104 Larson/Farber 4th ed