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References

“Naegele’s rule.” Wikipedia. Available online at http://en.wikipedia.org/wiki/Naegele's_rule (accessed May 14, 2013).

“403: NUMMI.” Chicago Public Media&Ira Glass, 2013. Available online at http://www.thisamericanlife.org/radio-archives/episode/403/nummi (accessed May 14, 2013).

“Scratch-Off Lottery Ticket Playing Tips.” WinAtTheLottery.com, 2013. Available online at http://www.winatthelottery.com/public/department40.cfm (accessed May 14, 2013).

“Smart Phone Users, By The Numbers.” Visual.ly, 2013. Available online at http://visual.ly/smart-phone-users-numbers (accessed May 14, 2013).

“Facebook Statistics.” Statistics Brain. Available online at http://www.statisticbrain.com/facebook-statistics/(accessed May 14, 2013).

Chapter review

The normal distribution, which is continuous, is the most important of all the probability distributions. Its graph is bell-shaped. This bell-shaped curve is used in almost all disciplines. Since it is a continuous distribution, the total area under the curve is one. The parameters of the normal are the mean µ and the standard deviation σ . A special normal distribution, called the standard normal distribution is the distribution of z -scores. Its mean is zero, and its standard deviation is one.

Formula review

Normal Distribution: X ~ N ( µ , σ ) where µ is the mean and σ is the standard deviation.

Standard Normal Distribution: Z ~ N (0, 1).

Calculator function for probability: normalcdf (lower x value of the area, upper x value of the area, mean, standard deviation)

Calculator function for the k th percentile: k = invNorm (area to the left of k , mean, standard deviation)

How would you represent the area to the left of one in a probability statement?

P ( x <1)

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What is the area to the right of one?

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Is P ( x <1) equal to P ( x ≤ 1)? Why?

Yes, because they are the same in a continuous distribution: P ( x = 1) = 0

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How would you represent the area to the left of three in a probability statement?

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What is the area to the right of three?

1 – P ( x <3) or P ( x >3)

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If the area to the left of x in a normal distribution is 0.123, what is the area to the right of x ?

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If the area to the right of x in a normal distribution is 0.543, what is the area to the left of x ?

1 – 0.543 = 0.457

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Use the following information to answer the next four exercises:

X ~ N (54, 8)

Find the probability that x >56.

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Find the probability that x <30.

0.0013

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Find the 80 th percentile.

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Find the 60 th percentile.

56.03

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X ~ N (6, 2)

Find the probability that x is between three and nine.

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X ~ N (–3, 4)

Find the probability that x is between one and four.

0.1186

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X ~ N (4, 5)

Find the maximum of x in the bottom quartile.

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Use the following information to answer the next three exercise: The life of Sunshine CD players is normally distributed with a mean of 4.1 years and a standard deviation of 1.3 years. A CD player is guaranteed for three years. We are interested in the length of time a CD player lasts. Find the probability that a CD player will break down during the guarantee period.

  1. Sketch the situation. Label and scale the axes. Shade the region corresponding to the probability.
    Empty normal distribution curve.
  2. P (0< x <____________) = ___________ (Use zero for the minimum value of x .)
  1. Check student’s solution.
  2. 3, 0.1979
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Find the probability that a CD player will last between 2.8 and six years.

  1. Sketch the situation. Label and scale the axes. Shade the region corresponding to the probability.
    Empty normal distribution curve.
  2. P (__________< x <__________) = __________
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Find the 70 th percentile of the distribution for the time a CD player lasts.

  1. Sketch the situation. Label and scale the axes. Shade the region corresponding to the lower 70%.
    Empty normal distribution curve.
  2. P ( x < k ) = __________ Therefore, k = _________
  1. Check student’s solution.
  2. 0.70, 4.78 years
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Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
poudel Reply
is gdp a reliable measurement of wealth
Atega Reply
introduction to econometrics
Husseini Reply
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hi
LEMLEM
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Sammol
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Mahesh
bi
Ruqayat
hi
Ruqayat
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Nyawa
hey
Sammol
hi
God
hello
Jahara
Good morning
Jorge
hi
abubakar
hi
Nmesoma
hi
Mahesh
Hi
Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
Alii Reply
what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
explain inflationcause and itis degre
Miresa Reply
what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
Thapase Reply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
Mercy Reply
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Amisha
money as unit of account means what?
Kalombe
A unit of account is something that can be used to value goods and services and make calculations
Jim
all of you please speak in English I can't understand you're language
Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
Kalombe
Mercy is it clear?😋
Kalombe
hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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