Faculty of Management Studies, University of Delhi

MBA (PT) I yr, Semester I, 2016-2017 8102: Quantitative Methods for Management
Assignment – IV – Normal Distribution
Submitted By:
Shakher saini , Roll no: S070 , South Campus

OC_Download times Case

From the given data in excel sheet we can get the Descriptive Statistics & distribution curve as mentioned below:
All the calculations done in excel using formula =(NORMDIST(x,mean,stdeviation,cumulative))

Descriptive Statistics - Time

Distribution Curve
Mean 12.86 16
Standard Error 0.33 14
Median 12.79 12
Mode 15.46
10
Standard Deviation 3.28
8
Frequency

Sample Variance 10.75

Kurtosis 0.88 6
Skewness -0.21 4
Range 19.87
2
Minimum 2.46
Maximum 22.33 0
Sum 1285.96

e
2

18

20

22
10

12

14

16

or
M
Count 100.00
Time

Q 1. Can the collected data be approximated by normal distribution?

Sol. Yes the data can be approximated by normal distribution because it looks like a bell curve & Mean is approximately
equal to median.
Since 50 % of data is on either side of mean (12.8596 sec) we can calculate the F(x) for different values with reference to
standard deviation.=(NORMDIST(x,mean, +st_deviation,cumulative))

Minus
(NORMDIST(x,mean, +st_dev,True) Plus σ σ Differnce %Age
f(X)=n(mean,+1SD) 0.8413 0.1587 0.6827 68.2689
f(X)=n(mean,+2SD) 0.9772 0.0228 0.9545 95.4500
f(X)=n(mean,+3SD) 0.9987 0.0013 0.9973 99.7300
68% of values are within 1 standard deviation of the mean
95% of values are within 2 standard deviations of the mean
99.7% of values are within 3 standard deviations of the mean
So it can be approximately distributed.

Using the similar approach & formula for Normal Distribution we will solve the other questions.
Q 2. Review and evaluate the conclusions made by OurCampus! QRT. Which conclusion are correct? Which ones are
incorrect?
 A 15-second download is less likely than a 14 or 13-second download. Its true because :
P(X<1 P(X>1 P(X<1 P(X>1 P(X>1 P(X<1
5) 5) 4) 4) 3) 3)
0.743 0.257 0.636 0.364 0.517 0.482
 0 0 0 0 1 9

 If we can strive to eliminate times greater than 22.7 seconds, then more times will fall within 3 standard
deviations. It is incorrect as the values differ as shown below.
        %Age
P(X>22.7) 0.9987     99.87
f(X)=n(mean,
+3SD) 0.9987 0.0013 0.9973 99.73
  Plus 3.Sd Minus3.Sd Difference  

 One time out of every 10 times, an individual user will experience a download time that is greater than 17.06
seconds.It is also true.
  P(X<17.06) P(X>17.06) % Age
(NORMDIST(x,mean,sd,True) 0.8999 0.1001 10.0117

 Since over 99 percent of download times fall within plus or minus 3 standard deviations, our home page
download process meets the Six Sigma benchmark for industrial quality.It is correct.
f(X)=n(mean,
+3SD) 0.9987 0.0013 0.9973 99.73
Differenc
  Plus 3.Sd Minus3.Sd e  

Q 3. If OurCampus! could improve the mean time by five seconds, how would the probabilities change?
If 5 were added to each number in a set of data, the mean would increase by 5 and the standard deviation would remain
the same & Probability is a function of Mean and Standard Deviation. Hence change in Mean will have an impact on all
the probabilities.