SAFE – SBM Peer Mentoring

EC203 ECONOMIC STATISTICS

WEEK 08: Peer Mentoring Activity Sheet

Discussion Forum Session

A. Ice breaker Activity

1. Explain probability density function (pdf).

2. Use normal distribution table 3 to find the following probabilities:

a. P (z ≤ -1.96)
b. P (z ≤ 2.43)
c. P (z ≥ 1.7)
d. P (-2.97 ≤ z ≤ -1.38)

B. Discussion and Calculations questions

1. A supermarket does its delivery each day at a time that varies uniformly between 60
minutes and 180 minutes.
a. Draw the density function.
b. Find the probability that the delivery on a given day will occur between 80 minutes and
120 minutes.
c. Find the probability that the delivery on a given day will occur in less than 2 hours’ time.
d. Find the probability that the delivery on a given day will occur within 30 minutes.
e. What is the expected time of delivery?
f. Determine the standard deviation of the delivery time.

2. A certain brand of flood lamps has a lifetime that is normally distributed with a mean of
3750 hours and a standard deviation of 300 hours.
a. What proportion of these lamps will last for more than 4000 hours?
 b. What lifetime should the manufacturer advertise for these lamps in order that only 2%
of the lamps will burn out before the advertised lifetime?

Viber Chat Session

True or False

1. If we standardise the normal curve, we express the original x values in terms of their number
of standard deviations away from the mean.
2. In the normal distribution, the mean, median and mode are all at the same position on the
horizontal axis since the distribution is symmetric.
3. In the normal distribution, the flatter the curve, the smaller the standard deviation.
4. In the normal distribution, the total area under the curve is equal to one.
5. Using the standard normal curve, the z-score representing the 75th percentile is 0.67.

Fill in the Blanks

1. Any normal distribution can be transformed into a specific normal distribution called the
_______________________.
Choices: Uniform Normal Distribution, Standard Normal Distribution.

2. A ______________________ is one that can assume an uncountable number of values in

an interval.
Choices: Variable, Continuous Random Variable

3. The _______________________ is fully defined by two parameters; its mean and its
variance.
Choices: Uniform Distribution, Normal Distribution.