EC255, Oct8

Wednesday, October 14, 2020 9:48 AM

Normal Distribution:
• Z-score
○ Z = x-u/o
A z-score gives the number of stand of dev that a value x, is above or
below the mean .
U= 0
Std Dev or 1

Types of Distributions:
• Bionomal Distribution - Can use both form/or table
• Pussion Distribution - Can use both form/or table
• Exponential Distribution - Can use ONLY formula
• Normal Distribution - Can use ONLY table

Ex:

~~~ normally distributed with u= 494, and o= 100. FIND P(x<=550)

Step 1) Find corresponding z-score
z=x-u/o
z=(550-494)/100
z= 0.56
Step 2)
P(z <= 0.56) = ?

From the table find p(z<= 0.56)=

 From the table find p(z<= 0.56)=

The final answer is all the area below the green/yellow area, which is the
purple area in such a case
Since it is a perfect symmetric distribution:
- From 0 to all the way to the left = 0.5 prob
- From 0 to all the way to the right = 0.5 prob
Final Ans:
= Table +0.5

First Decimal (Column), Second Decimal (Row)

First Decimal (Column), Second Decimal (Row)

Another ex):

Find p(x>700) =
z= x-u/o
z=(700-494)/100
z= 2.06

We are looking for the green area since x>2.06

Thus, 0.5 - 2.06 =
0.5 - 0.4803 = 0.0197
z=x-u/o
z= (300 - 494) / 100 = -1.94
z=(600 - 494) / 100 = 1.06
P(-1.94 <= z <= 1.06) = ?
z=x-u/o
Poisson Distribution:

○ A Key for determining the Possiun Distribution is " Arrive Randomly "

λ = 3.2 customers/ 4mins

x = 10 customers/ 8mins
§ Make sure the time interval matches!!
Thus. λ = 6.4/ 8mins
x = 10/8mins
Formula Solution:
P(x=10) = (6.4^10e^(-6.4))/10 = 0.0528
Table Solution:

λ = 1.6 / day
 λ = 1.6 / day
x = 4 / day
Table Sol:

□ 0.0551 from the table

2) P(x)= No houses/day
□ P(x=0) = 0.2019
3) P(x>5) = " look for x = 6,7,8,9 " add their x-values together get the sum
P(x>5) = 0.0047 + 0.0011 + 0.0002 + 0.0000 = 0.0060

4) λ = 1.6/day
X= 10 /day
P(x>=10) = 0.0000 since the table ends at 9 so anything >9 will = 0

1) λ = 1.6/day
2) P(x=4/ two-days) = ?
a. Adjust λ = 1.6*2 = 3.2
b. λ = 3.2/day
P(x=4/two-days)= 0.1781

• Never change the probability(x) time-interval, only the λ ques

• Use the table now/formula

Exponential Distribution:
A Key to determine Exponential Distribution is that " Elapses between … "
• Exponential uses Formula Only!
Exponential Distribution:
A Key to determine Exponential Distribution is that " Elapses between … "
• Exponential uses Formula Only!
• P(x>=x0) = e^(-λ)(x0)
• This formula only measure More than
• Ques1)
• λ = 15/hour -> ADJUSTMENT NEEDED
• P(x<5mins) =
• λ = 15/60 = 0.25
• New: λ = 0.25/mins
• P(x<5) = 1 - (e^(-0.25)(5) = 0.7134
We did 1-formula because the ques asked for x less than 5 while the
formula only has greater than

• Use (1/λ) if the the mean is given as a mean time instead of direct
question
• Ques2):
• λ = 0.05/hours
• P(10<=x<=15) =
§ x>=10 - x>=15 = e^(-0.05)*(10) - e^(-0.05)*(15) =
§ 0.1341

Normal Distribution:

• Only uses table - The one we use most in business

• Bell Shaped
• Symmetrical
• Mean
• Median
• Mode
• Are Equal
 • Mode
• Are Equal

• The total area under the curve is = 0.5 + 0.5 = 1

• Connects to the Empirical Rule
§ 68% = 1*stdev
§ 95% = 2*stdev
§ 99.7 = 3*stdev
• This Distribution only has one table involved z-distribution
• Always in Normal Distribution
§ u=0
§ o=1
• z = (x-u)/o

• When asking for what 67.72 would be greater than what amount
• U= 2.7
• O= 0.78
• P(z>x) = 0.6772
• 0.5 - 0.6772 = -0.1772
• Look for -0.1772 from the table z
• Z= -0.46
• -0.46 = (x-2.7)/0.78
• -0.46*0.78 = -0.3588
• -0.3588 + 2.7 = 2.3412
•