Problem 4-27 HW 8 Page 1 out of 4

As in Problem 7-28, this problem will help you become more familiar with the Normal
Distribution. You should be able to "guestimate' probabilities for the Normal. I have repeated
the use of figures in these problems to help you think about these probabilities. Figure 1 is the
CDF for the standard normal variable. This CDF is represented by the values on the inside cover
of your textbook. This figure was created using the Excel function " NORMSDIST()".

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-4 -3.5 -3 -2.5 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 3 3.5 4
z = the Standard Normal RV

Figure 1 CDF for the standard normal random variable

Figure 2 is the PDF for the standard normal random variable. This figure was made using the
Excel function "=NORMDIST(celladdress, 0,1,FALSE)

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-4 -3.5 -3 -2.5 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 3 3.5 4
z = standard normal random variable

Figure 2 PDF for the standard normal RV.

Problem 4-27 HW 8 Page 2 out of 4

a) Φ(c) = .9838 implies that the area to the left of c is .9838, i.e. P(Z=c) = .9838. Examining
Figure 1 or looking in the body of the table on the inside of your text, you find that .9838 is
found in the 2.1 row and the .04 column, so c = 2.14.

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z = the Standard Normal RV

Figure 3 The value of c representing P(Z =c) =.9838.

b) P(0 = Z =c) = Φ(c) - Φ(0) = ?? - .5000 = .291. Thus Φ(c) = .791. Using the same method as
was used in part a) we find c = .81

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z = the Standard Normal RV

Figure 4 The value of c representing Φ (c) = .791.

Problem 4-27 HW 8 Page 3 out of 4

c) P(c = Z) =0.121 = 1 - P(Z<c) = .121. So P(Z<c) = 1-.121 = .879. So c = 1.17

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z = the Standard Normal RV

Figure 4 The value of c representing Φ (c) = .879

d) P(-c = Z = c) = .668 This probability means that the area under the PDF between -c and c is
.668. Thus the area above and below -c and c is 1-.668. So, the area below -c is 0.5*(1-.668)
= .116. Thus Φ(-c) = .166, so -c = -.97 and c = .97. Another method to think about this
problem is P(-c = Z = c) = Φ(c) - Φ(-c) = Φ(c) -(1-Φ(c)) = 2Φ(c) -1 = .668. So Φ(c) = .9920.
Thus c = 2.41.

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z = standard normal random variable

Figure 5 The area under the curve representing P(-c = Z =c) = .668
Problem 4-27 HW 8 Page 4 out of 4

e) P(| Z | =c) = .016 = P(-c = Z or Z = c). Half the area of 0.16 is on the left c. P(Z = -c) = .5*
.016 = .008. This result implies Φ(-c) = .008. Using the table in the text, you find -c = -2.41,
and c = 2.41

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z = standard normal random variable

Figure 6 Area under the PDF representing P(| Z | = c) = .016