<< Chapter < Page Chapter >> Page >

If X is a normally distributed random variable and X ~ N(μ, σ) , then the z-score is:

z = x - μ σ

The z-score tells you how many standard deviations that the value x is above (to the right of) or below (to the left of) the mean, μ . Values of x that are larger than the mean have positive z-scores and values of x that are smaller than the mean have negative z-scores. If x equals the mean, then x has a z-score of 0 .

Suppose X ~ N(5, 6) . This says that X is a normally distributed random variable with mean μ = 5 and standard deviation σ = 6 . Suppose x = 17 . Then:

z = x - μ σ = 17 - 5 6 = 2

This means that x = 17 is 2 standard deviations (2σ) above or to the right of the mean μ = 5 . The standard deviation is σ = 6 .

Notice that:

5 + 2 6 = 17 (The pattern is μ + z σ = x . )

Now suppose x=1 . Then:

z = x - μ σ = 1 - 5 6 = - 0.67 (rounded to two decimal places)

This means that x = 1 is 0.67 standard deviations (- 0.67σ) below or to the left of the mean μ = 5 . Notice that:

5 + ( -0.67 ) ( 6 ) is approximately equal to 1 (This has the pattern μ + ( -0.67 ) σ = 1 )

Summarizing, when z is positive, x is above or to the right of μ and when z is negative, x is to the left of or below μ .

Got questions? Get instant answers now!

Some doctors believe that a person can lose 5 pounds, on the average, in a month by reducing his/her fat intake and by exercising consistently. Suppose weight loss has anormal distribution. Let X = the amount of weight lost (in pounds) by a person in a month. Use a standard deviation of 2 pounds. X ~ N(5, 2) . Fill in the blanks.

Suppose a person lost 10 pounds in a month. The z-score when x = 10 pounds is z = 2.5 (verify). This z-score tells you that x = 10 is ________ standard deviations to the ________ (right or left) of the mean _____ (What is the mean?).

This z-score tells you that x = 10 is 2.5 standard deviations to the right of the mean 5 .

Got questions? Get instant answers now!

Suppose a person gained 3 pounds (a negative weight loss). Then z = __________. This z-score tells you that x = -3 is ________ standard deviations to the __________ (right or left) of the mean.

z = -4 . This z-score tells you that x = -3 is 4 standard deviations to the left of the mean.

Got questions? Get instant answers now!

Suppose the random variables X and Y have the following normal distributions: X ~ N(5, 6) and Y ~ N(2, 1) . If x = 17 , then z  =  2 . (This was previously shown.) If y = 4 , what is z ?

z = y - μ σ = 4 - 2 1 = 2 where μ=2 and σ=1.

The z-score for y = 4 is z = 2 . This means that 4 is z = 2 standard deviations to the right of the mean. Therefore, x = 17 and y = 4 are both 2 (of their ) standard deviations to the right of their respective means.

The z-score allows us to compare data that are scaled differently. To understand the concept, suppose X ~ N(5, 6) represents weight gains for one group of people who are trying to gain weight in a 6 week period and Y ~ N(2, 1) measures the same weight gain for a second group of people. A negative weight gain would be a weight loss.Since x = 17 and y = 4 are each 2 standard deviations to the right of their means, they represent the same weight gain relative to their means .

Got questions? Get instant answers now!

The empirical rule

If X is a random variable and has a normal distribution with mean µ and standard deviation σ then the Empirical Rule says (See the figure below)
  • About 68.27% of the x values lie between -1 σ and +1 σ of the mean µ (within 1 standard deviation of the mean).
  • About 95.45% of the x values lie between -2 σ and +2 σ of the mean µ (within 2 standard deviations of the mean).
  • About 99.73% of the x values lie between -3 σ and +3 σ of the mean µ (within 3 standard deviations of the mean). Notice that almost all the x values lie within 3 standard deviations of the mean.
  • The z-scores for +1 σ and –1 σ are +1 and -1, respectively.
  • The z-scores for +2 σ and –2 σ are +2 and -2, respectively.
  • The z-scores for +3 σ and –3 σ are +3 and -3 respectively.
Empirical Rule
The Empirical Rule is also known as the 68-95-99.7 Rule.

Suppose X has a normal distribution with mean 50 and standard deviation 6.

  • About 68.27% of the x values lie between -1 σ = (-1)(6) = -6 and 1 σ = (1)(6) = 6 of the mean 50. The values 50 - 6 = 44 and 50 + 6 = 56 are within 1 standard deviation of the mean 50. The z-scores are -1 and +1 for 44 and 56, respectively.
  • About 95.45% of the x values lie between -2 σ = (-2)(6) = -12 and 2 σ = (2)(6) = 12 of the mean 50. The values 50 - 12 = 38 and 50 + 12 = 62 are within 2 standard deviations of the mean 50. The z-scores are -2 and 2 for 38 and 62, respectively.
  • About 99.73% of the x values lie between -3 σ = (-3)(6) = -18 and 3 σ = (3)(6) = 18 of the mean 50. The values 50 - 18 = 32 and 50 + 18 = 68 are within 3 standard deviations of the mean 50. The z-scores are -3 and +3 for 32 and 68, respectively.

Got questions? Get instant answers now!

Questions & Answers

differentiate between demand and supply giving examples
Lambiv Reply
differentiated between demand and supply using examples
Lambiv
what is labour ?
Lambiv
how will I do?
Venny Reply
how is the graph works?I don't fully understand
Rezat Reply
information
Eliyee
devaluation
Eliyee
t
WARKISA
hi guys good evening to all
Lambiv
multiple choice question
Aster Reply
appreciation
Eliyee
explain perfect market
Lindiwe Reply
In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
Ezea
What is ceteris paribus?
Shukri Reply
other things being equal
AI-Robot
When MP₁ becomes negative, TP start to decline. Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
Kelo
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
Kelo
yes,thank you
Shukri
Can I ask you other question?
Shukri
what is monopoly mean?
Habtamu Reply
What is different between quantity demand and demand?
Shukri Reply
Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
Ezea
ok
Shukri
how do you save a country economic situation when it's falling apart
Lilia Reply
what is the difference between economic growth and development
Fiker Reply
Economic growth as an increase in the production and consumption of goods and services within an economy.but Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
Shukri
production function means
Jabir
What do you think is more important to focus on when considering inequality ?
Abdisa Reply
any question about economics?
Awais Reply
sir...I just want to ask one question... Define the term contract curve? if you are free please help me to find this answer 🙏
Asui
it is a curve that we get after connecting the pareto optimal combinations of two consumers after their mutually beneficial trade offs
Awais
thank you so much 👍 sir
Asui
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50. A,Calculate quantities of x and y which maximize utility. B,Calculate value of Lagrange multiplier. C,Calculate quantities of X and Y consumed with a given price. D,alculate optimum level of output .
Feyisa Reply
Answer
Feyisa
c
Jabir
the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
Gsbwnw Reply
suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product
Abdureman
types of unemployment
Yomi Reply
What is the difference between perfect competition and monopolistic competition?
Mohammed
Got questions? Join the online conversation and get instant answers!
Jobilize.com Reply

Get Jobilize Job Search Mobile App in your pocket Now!

Get it on Google Play Download on the App Store Now




Source:  OpenStax, Collaborative statistics. OpenStax CNX. Jul 03, 2012 Download for free at http://cnx.org/content/col10522/1.40
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Collaborative statistics' conversation and receive update notifications?

Ask