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Week 3 Review for GM 533
                   B. Heard
  (These may not be copied, reproduced, or
  posted in an online classroom without my
permission. Students may download one copy
              for personal use.)
Week 3 GM 533
• Your Online Course explains how to do Normal
  Distribution calculations in Minitab
• I am going to share with you an approach I used
  with a visually impaired student who could not
  “see” Minitab to use it.
• You can use Minitab or Excel with these
  calculations, I simply like to expose you to
  different methods of solving problems
• Being able to use Excel is important, because
  almost every person has access to Excel in the
  workplace
Week 3 GM 533
• At this time, I am going to attempt to transfer
  an Excel File here in Webex
  – The file is titled Normal_Distribution_Made_EZ
  – It is a template to do Normal Distribution
    calculations
  – You DON’T have to use this in your work, but you
    may find it very helpful
  – I use it at work, I know it works correctly
Week 3 GM 533
• Most of your problems on your Checkpoint
  quiz this week deal with the Normal
  Distribution
• The following examples should help you a lot!
Week 3 GM 533
• The population of fish lengths in Lake Big
  Catch is normally distributed with a mean of
  12.5 inches and a standard deviation of 2.7
  inches.
  What is the probability that a fish caught in
  Lake Big Catch at random will be less than 12
  inches long?
Week 3 GM 533
• Open the Excel File
  Normal_Distribution_Made_EZ
• Input 12.5 for the Mean and 2.7 for the
  Standard Deviation
          Normal Distribution

               Mean        Stdev
               12.5         2.70
Week 3 GM 533
• What is the probability that a fish caught in Lake
  Big Catch at random will be less than 12 inches
  long?
• We want to know the area to the left because we
  want to know the probability a fish will be less
  than 12 inches.
• Enter 12 in the green box under the x in the boxes
  under “Area to the Left”
• Never enter any values in areas that are not
  green – they are there to do calculations
Week 3 GM 533
• We can see the answer is 0.4265, that is the probability a
  fish would be less than 12 inches given that the distribution
  is normal with the given mean and standard deviation!

  Normal Distribution              Area to the Left


                                   P(X<x)
     Mean      Stdev                          x

      12.5     2.70                0.4265    12
Week 3 GM 533
• The population of fish lengths in Lake Big
  Catch is normally distributed with a mean of
  12.5 inches and a standard deviation of 2.7
  inches.
  What is the probability that a fish caught in
  Lake Big Catch at random will be between 11.3
  than 13.7 inches long?
Week 3 GM 533
• What is the probability that a fish caught in Lake
  Big Catch at random will be between 11.3 than
  13.7 inches long?
• We want to know the area between because we
  want to know the probability a fish will be
  between 11.3 and 13.7 inches long.
• Enter 11.3 on the left and 13.7 on the right in the
  green boxes under the x1 and x2 in the boxes
  under “Area between”
• Never enter any values in areas that are not
  green – they are there to do calculations
Week 3 GM 533
• We can see that the probability would be
  0.3433 or 34.33% that a fish is between 11.3
  and 13.7 inches
Normal         Area to the   Area to the
Distribution   Left          Right         Area between

 Mean Stdev    P(X<x)   x    P(X>x)   x     x1 P(x1<X<x2) x2
 12.5 2.70                                 11.30 0.3433 13.70
Week 3 GM 533
• Pretty Cool Eh?
Week 3 GM 533
• Over the last year, 87% of Americans bought
  something that was “not on their list” at the
  grocery store. Assume these purchases were
  normally distributed. The mean amount spent on
  these items was $15.32 with a standard deviation
  of 3.07
• Find the probability someone spent less than
  $12.50 on “non-list” items.
• Find the probability someone spent more than
  $10.00 on “non-list” items.
Week 3 GM 533
 • You can see the answers below

             Area to the          Area to the        Area
             Left                 Right              between

Mean Stdev     P(X<x)       x       P(X>x)      x       x1     P(x1<X<x2) x2
15.32 3.07     0.1792      12.5     0.9584      10
Week 3 GM 533
• The population of fish lengths in Lake Big
  Catch is normally distributed with a mean of
  12.5 inches and a standard deviation of 2.7
  inches. A sample of 9 fish were caught
  randomly from the lake.
  What is the probability that of those fish
  caught in Lake Big Catch at random will
  average between 12.2 than 13.1 inches long?
Week 3 GM 533
• This one is a little different because we are
  dealing with a sample of 9
  – We need to adjust our standard deviation by
    dividing it by the square root of the sample size
  – We will use 2.7/√9 = 2.7/3 = 0.9
  – Use 0.9 as your standard deviation
Week 3 GM 533
• So the probability would be 0.3781 or 37.81%

Normal          Area to             Area to the          Area
Distribution    the Left            Right                between

 Mean Stdev       P(X<x)     x         P(X>x)     x          x1     P(x1<X<x2) x2
 12.5 0.90                                                  12.20     0.3781 13.10




   If you are taking a multiple choice test, sometimes your answer may be slightly
   different – YOU WILL BE ABLE TO TELL THE CORRECT ANSWER.
Week 3 GM 533
• You can also use the Excel Normal Distribution
  Calculator File to work with Proportions. Just
  read the questions carefully.
Week 3 GM 533
• In a recent telephone survey among Happy
  County residents, 1000 residents participated.
  Based on the survey, it was predicted that 53%
  of residents approve of a new city park. For
  argument’s sake, assume that 55% of the
  residents in the county support the new park
  (p = 0.55). Calculate the probability of
  observing a sample proportion of residents
  0.53 or higher supporting the new park. We
  are assuming a normal distribution.
Week 3 GM 533
• We must first calculate the standard deviation
  – It is calculated using the following formula
  – Square Root ((p)(q)/sample size)
  – q is just 1 minus p
  – So we have
     •   Square Root ((0.55)(1 – 0.55)/1000)
     •   Which is Square Root ((0.55)(0.45)/1000)
     •   Which is Square Root (0.0002475)
     •   Which is 0.0157 USE THIS VALUE FOR YOUR
         STANDARD DEVIATION AND p FOR YOUR MEAN
Week 3 GM 533
 • As you see, we get 0.8986 for the probability
   being over 53% or 0.53
  Normal
  Distribution              Area to the Left       Area to the Right

    Mean   Stdev                   P(X<x)      x         P(X>x)          x
    0.55    0.02                                         0.8986        0.53




Note: I did input 0.0157 for
the Standard Deviation. The
program just rounds. The correct
value is still there.
Week 3 GM 533
• Here is a similar problem where you have to
  do a little more math.
Week 3 GM 533
• The local Animal Recovery Center notes that
  over the past 12 years, studies have shown
  that 10 % of adopted pets are returned. The
  local university’s polling group just conducted
  a study of 225 adoptions from the Animal
  Recovery Center.
  What is the probability that less than 30
  adoptions resulted in the pet being returned?
Week 3 GM 533
• We must first calculate the standard deviation
  –   It is calculated using the following formula
  –   Square Root ((p)(q)/sample size)
  –   q is just 1 minus p
  –   Our “p” is 10% or 0.10 based on the study
  –   So we have
       •   Square Root ((0.10)(1 – 0.10)/225)
       •   Which is Square Root ((0.10)(0.90)/225)
       •   Which is Square Root (0.0004)
       •   Which is 0.02 USE THIS VALUE FOR YOUR STANDARD
           DEVIATION AND p FOR YOUR MEAN
Week 3 GM 533
• We must also calculate our critical value or
  value that we are interested in.
  – We wanted to know the probability of less than 30
    of the 225 returning their pets.
     • 30/225 is 0.1333 (13.33%)
     • We will use this value to find the probability of less that
       13.33% of the pets being returned.
Week 3 GM 533
• From the spreadsheet, we can see the
  probability is 0.9520

  Normal Distribution      Area to the Left

      Mean       Stdev              P(X<x)      x
       0.1        0.02              0.9520    0.133
Week 3 GM 533
• What about less than 20 of the 225 are returned?
• The only thing that changes is the value or
  proportion we are interested in.
• It is now 20/225 is 0.0889 or 8.89%
Week 3 GM 533
• The probability would be 0.2894

Normal Distribution          Area to the Left

    Mean       Stdev                   P(X<x)               x
     0.1        0.02                   0.2894             0.089




                                  Note: This is not an error. Excel
                                  just rounded the 0.0889 to 0.089.
                                  The correct value is still there.
Week 3 GM 533
• Come see me at the “Statcave”
• www.facebook.com/statcave
• You DO NOT have to be a Facebook person to see
  these.
• If you are, become a fan.
• IT IS NOT REQUIRED TO BE ON FACEBOOK. IT’S
  SOMETHING I DO FOR FUN.
• I post charts there because it is easy for me to do.

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Week3 lecture gm533

  • 1. Week 3 Review for GM 533 B. Heard (These may not be copied, reproduced, or posted in an online classroom without my permission. Students may download one copy for personal use.)
  • 2. Week 3 GM 533 • Your Online Course explains how to do Normal Distribution calculations in Minitab • I am going to share with you an approach I used with a visually impaired student who could not “see” Minitab to use it. • You can use Minitab or Excel with these calculations, I simply like to expose you to different methods of solving problems • Being able to use Excel is important, because almost every person has access to Excel in the workplace
  • 3. Week 3 GM 533 • At this time, I am going to attempt to transfer an Excel File here in Webex – The file is titled Normal_Distribution_Made_EZ – It is a template to do Normal Distribution calculations – You DON’T have to use this in your work, but you may find it very helpful – I use it at work, I know it works correctly
  • 4. Week 3 GM 533 • Most of your problems on your Checkpoint quiz this week deal with the Normal Distribution • The following examples should help you a lot!
  • 5. Week 3 GM 533 • The population of fish lengths in Lake Big Catch is normally distributed with a mean of 12.5 inches and a standard deviation of 2.7 inches. What is the probability that a fish caught in Lake Big Catch at random will be less than 12 inches long?
  • 6. Week 3 GM 533 • Open the Excel File Normal_Distribution_Made_EZ • Input 12.5 for the Mean and 2.7 for the Standard Deviation Normal Distribution Mean Stdev 12.5 2.70
  • 7. Week 3 GM 533 • What is the probability that a fish caught in Lake Big Catch at random will be less than 12 inches long? • We want to know the area to the left because we want to know the probability a fish will be less than 12 inches. • Enter 12 in the green box under the x in the boxes under “Area to the Left” • Never enter any values in areas that are not green – they are there to do calculations
  • 8. Week 3 GM 533 • We can see the answer is 0.4265, that is the probability a fish would be less than 12 inches given that the distribution is normal with the given mean and standard deviation! Normal Distribution Area to the Left P(X<x) Mean Stdev x 12.5 2.70 0.4265 12
  • 9. Week 3 GM 533 • The population of fish lengths in Lake Big Catch is normally distributed with a mean of 12.5 inches and a standard deviation of 2.7 inches. What is the probability that a fish caught in Lake Big Catch at random will be between 11.3 than 13.7 inches long?
  • 10. Week 3 GM 533 • What is the probability that a fish caught in Lake Big Catch at random will be between 11.3 than 13.7 inches long? • We want to know the area between because we want to know the probability a fish will be between 11.3 and 13.7 inches long. • Enter 11.3 on the left and 13.7 on the right in the green boxes under the x1 and x2 in the boxes under “Area between” • Never enter any values in areas that are not green – they are there to do calculations
  • 11. Week 3 GM 533 • We can see that the probability would be 0.3433 or 34.33% that a fish is between 11.3 and 13.7 inches Normal Area to the Area to the Distribution Left Right Area between Mean Stdev P(X<x) x P(X>x) x x1 P(x1<X<x2) x2 12.5 2.70 11.30 0.3433 13.70
  • 12. Week 3 GM 533 • Pretty Cool Eh?
  • 13. Week 3 GM 533 • Over the last year, 87% of Americans bought something that was “not on their list” at the grocery store. Assume these purchases were normally distributed. The mean amount spent on these items was $15.32 with a standard deviation of 3.07 • Find the probability someone spent less than $12.50 on “non-list” items. • Find the probability someone spent more than $10.00 on “non-list” items.
  • 14. Week 3 GM 533 • You can see the answers below Area to the Area to the Area Left Right between Mean Stdev P(X<x) x P(X>x) x x1 P(x1<X<x2) x2 15.32 3.07 0.1792 12.5 0.9584 10
  • 15. Week 3 GM 533 • The population of fish lengths in Lake Big Catch is normally distributed with a mean of 12.5 inches and a standard deviation of 2.7 inches. A sample of 9 fish were caught randomly from the lake. What is the probability that of those fish caught in Lake Big Catch at random will average between 12.2 than 13.1 inches long?
  • 16. Week 3 GM 533 • This one is a little different because we are dealing with a sample of 9 – We need to adjust our standard deviation by dividing it by the square root of the sample size – We will use 2.7/√9 = 2.7/3 = 0.9 – Use 0.9 as your standard deviation
  • 17. Week 3 GM 533 • So the probability would be 0.3781 or 37.81% Normal Area to Area to the Area Distribution the Left Right between Mean Stdev P(X<x) x P(X>x) x x1 P(x1<X<x2) x2 12.5 0.90 12.20 0.3781 13.10 If you are taking a multiple choice test, sometimes your answer may be slightly different – YOU WILL BE ABLE TO TELL THE CORRECT ANSWER.
  • 18. Week 3 GM 533 • You can also use the Excel Normal Distribution Calculator File to work with Proportions. Just read the questions carefully.
  • 19. Week 3 GM 533 • In a recent telephone survey among Happy County residents, 1000 residents participated. Based on the survey, it was predicted that 53% of residents approve of a new city park. For argument’s sake, assume that 55% of the residents in the county support the new park (p = 0.55). Calculate the probability of observing a sample proportion of residents 0.53 or higher supporting the new park. We are assuming a normal distribution.
  • 20. Week 3 GM 533 • We must first calculate the standard deviation – It is calculated using the following formula – Square Root ((p)(q)/sample size) – q is just 1 minus p – So we have • Square Root ((0.55)(1 – 0.55)/1000) • Which is Square Root ((0.55)(0.45)/1000) • Which is Square Root (0.0002475) • Which is 0.0157 USE THIS VALUE FOR YOUR STANDARD DEVIATION AND p FOR YOUR MEAN
  • 21. Week 3 GM 533 • As you see, we get 0.8986 for the probability being over 53% or 0.53 Normal Distribution Area to the Left Area to the Right Mean Stdev P(X<x) x P(X>x) x 0.55 0.02 0.8986 0.53 Note: I did input 0.0157 for the Standard Deviation. The program just rounds. The correct value is still there.
  • 22. Week 3 GM 533 • Here is a similar problem where you have to do a little more math.
  • 23. Week 3 GM 533 • The local Animal Recovery Center notes that over the past 12 years, studies have shown that 10 % of adopted pets are returned. The local university’s polling group just conducted a study of 225 adoptions from the Animal Recovery Center. What is the probability that less than 30 adoptions resulted in the pet being returned?
  • 24. Week 3 GM 533 • We must first calculate the standard deviation – It is calculated using the following formula – Square Root ((p)(q)/sample size) – q is just 1 minus p – Our “p” is 10% or 0.10 based on the study – So we have • Square Root ((0.10)(1 – 0.10)/225) • Which is Square Root ((0.10)(0.90)/225) • Which is Square Root (0.0004) • Which is 0.02 USE THIS VALUE FOR YOUR STANDARD DEVIATION AND p FOR YOUR MEAN
  • 25. Week 3 GM 533 • We must also calculate our critical value or value that we are interested in. – We wanted to know the probability of less than 30 of the 225 returning their pets. • 30/225 is 0.1333 (13.33%) • We will use this value to find the probability of less that 13.33% of the pets being returned.
  • 26. Week 3 GM 533 • From the spreadsheet, we can see the probability is 0.9520 Normal Distribution Area to the Left Mean Stdev P(X<x) x 0.1 0.02 0.9520 0.133
  • 27. Week 3 GM 533 • What about less than 20 of the 225 are returned? • The only thing that changes is the value or proportion we are interested in. • It is now 20/225 is 0.0889 or 8.89%
  • 28. Week 3 GM 533 • The probability would be 0.2894 Normal Distribution Area to the Left Mean Stdev P(X<x) x 0.1 0.02 0.2894 0.089 Note: This is not an error. Excel just rounded the 0.0889 to 0.089. The correct value is still there.
  • 29. Week 3 GM 533 • Come see me at the “Statcave” • www.facebook.com/statcave • You DO NOT have to be a Facebook person to see these. • If you are, become a fan. • IT IS NOT REQUIRED TO BE ON FACEBOOK. IT’S SOMETHING I DO FOR FUN. • I post charts there because it is easy for me to do.