E370

5/13/17
Continuing
Continuous
Random Variables
flow Chart
E370 Family of Continuous Distributions

Uniform: simplest continuous X~U(a,b)

distribution, sometimes called a
rectangular distribution,
represented by a line (curve)
parallel to the x-axis defined over a P(c<x<d) =
specified interval (a,b). The
distance from the x-axis to the
curve is the pdf. Parameters are a
and b.

Normal Family: One of the

most important continuous
distributions; an infinite number of
normal distributions, each defined
by its parameters, and ; a bell-
shaped and symmetric distribution.
Using the Normal for
Approximations:
Approximate the Binomial Using the
Normal
The Standard Normal:
Transforms any normal into the
number of standard deviations its
values are away from its mean.
The Students t: A family of
approximations of the Standard
Normal; a one parameter
distribution each described
completely by its degrees of
freedom (df). Centered at 0, units
are approximate standard
deviations.
X~N(, ) ** =NORM.DIST(x, , , 1) **
=NORM.INV(, , )
** If the binomial is sufficiently symmetric [(n*)>5 AND n*(1-
)>5], the normal can provide a reasonable approximation of
binomial probabilities. ** The use of the Continuity Correction
Factor (CCF = +/- 0.5) is essential for accurate estimates. ** Its
usefulness diminishes as n increases, although there is no rule
for when it can be ignored. ** Use the expected values of the
specific binomial for the parameters in the NORM.DIST or
NORM.INV commands.
** ** =NORM.S.DIST(Z,1) ** =NORM.S.INV()
Use by itself to compare relative locations of two different
normal distributions. Use in conjunction with other statistics
for confidence intervals and hypothesis testing.
X~t(df) ** ** =T.DIST(t,df,1) ** =T.INV(,df)
Use when the population standard deviation, , is unknown, in
conjunction with other statistics for confidence intervals and
hypothesis testing.