DiscreteandContinuousProbabilityDistributions幻灯片.pptVIP

Business Statistics: A Decision-Making Approach, 6e ? 2005 Prentice-Hall, Inc. The Normal Distribution Continuous Probability Distributions Probability Distributions Normal Uniform Exponential The Normal Distribution ‘Bell Shaped’ Symmetrical Mean, Median and Mode are Equal Location is determined by the mean, μ Spread is determined by the standard deviation, σ The random variable has an infinite theoretical range: + ? to ? ? Mean = Median = Mode x f(x) μ σ By varying the parameters μ and σ, we obtain different normal distributions Many Normal Distributions The Normal Distribution Shape x f(x) μ σ Changing μ shifts the distribution left or right. Changing σ increases or decreases the spread. Finding Normal Probabilities Probability is the area under thecurve! a b x f(x) P a x b ( ) ? ? Probability is measured by the area under the curve f(x) x μ Probability as Area Under the Curve 0.5 0.5 The total area under the curve is 1.0, and the curve is symmetric, so half is above the mean, half is below Empirical Rules μ ± 1σ encloses about 68% of x’s? f(x) x μ μ+1σ μ-1σ What can we say about the distribution of values around the mean? There are some general rules: σ σ 68.26% The Empirical Rule μ ± 2σ covers about 95% of x’s μ ± 3σ covers about 99.7% of x’s x μ 2σ 2σ x μ 3σ 3σ 95.44% 99.72% (continued) Importance of the Rule If a value is about 2 or more standard deviations away from the mean in a normal distribution, then it is far from the mean The chance that a value that far or farther away from the mean is highly unlikely, given that particular mean and standard deviation The Standard Normal Distribution Also known as the “z” distribution Mean is defined to be 0 Standard Deviation is 1 z f(z) 0 1 Values above the mean have positive z-values, values below the mean have negative z-values The Standard Normal Any normal distribution (with any mean and standard deviation combination) can be transformed into the standard