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ELEMENTARY
STATISTICS AND
PROBABILITY
Normal Distribution
1. Most graduate schools of business require applicants for admission to take the Graduate
Management Admission Council’s GMAT examination. Scores on the GMAT are
roughly normally distributed with a Mean of 527 and a standard deviation of 112. What is
the probability of an individual scoring above 500 on the GMAT?
2. The average number of acres burned by forest and range fires in a large New Mexico
county is 4,300 acres Per year, with a standard deviation of 750 acres. The distribution of
the number of acres burned is normal. What is the probability that between 2,500 and
4,200 acres will be burned in any given year?
Solutions:
The percentages are equivalent to the following areas under the normal curve
11.9%=0.11963.7%=0.637
A. We want to find the z-value that leaves an Area of 0.119 under it. We locate this number
in the body of a Table of Areas Under the Normal Curve and the z-value is obtained from
the first Column and row that linearly coincide with this Number.
B. Since the area is on the right, we use the complement 10.637 = 0.363
And similarly, find the z-value that leaves an area Of 0.363 under it.
Normality
1.Suppose we want to create a probability histogram for the discrete random variable X that
represents the number of heads in four tosses of a coin. Let’s say the coin is balanced, and each
toss is independent of all the other tosses.
We know the random variable X can take on the values of 0, 1, 2, 3, or 4. For X to take on the
value of 0, no heads would show up, meaning four tails would show up. Let’s call this TTTT.
For X to take on the value of 1, we could have four different scenarios: HTTT, THTT, TTHT, or
TTTH. For X to take on a value of 2, we have six scenarios: HHTT, HTHT, HTTH, THHT,
THTH, or TTHH. For X to take on 3, we have: HHHT, HHTH, HTHH, or THHH. And finally,
for X to take on 4, we only have one scenario: HHHH.
There are sixteen different possibilities when tossing a coin four times. The probability of each
outcome is equal to
1/16=0.0625
The probability of each of the random variables is as follows:
P(x=0)= 1/16= 0.0625
P(x=1)= 4/16= 0.25
P(x=2) = 6/16= 0.375
P(x=3)= 4/16= 0.25
P(x=4)= 1/16 = 0.0625
2. The length of time, in hours, it takes an “over 40” group of people to play one soccer
match is normally distributed with a mean of 2 hours and a standard deviation of 0.5
hours. A sample of size n = 50 is drawn randomly from the population. Find the
probability that the sample mean is between 1.8 hours and 2.3 hours.
Normal Approximation to the Binomial Distribution
1. Assume that 6% of American drivers text while driving. If 300 drivers are selected at
random, find the probability that exactly 25 say they text while driving.