7- 1

Chapter

Seven

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

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Chapter Seven
Continuous Probability Distributions
GOALS
When you have completed this chapter, you will be able to:
ONE
Understand the difference between discrete and continuous
distributions.
TWO
Compute the mean and the standard deviation for a uniform
distribution.
THREE
Compute probabilities using the uniform distribution.
FOUR
List the characteristics of the normal probability distribution.
Goals
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Chapter Seven continued

Continuous Probability Distributions

GOALS
When you have completed this chapter, you will be able to:
FIVE
Define and calculate z values.
SIX
Determine the probability an observation will lie between two points
using the standard normal distribution.
SEVEN
Determine the probability an observation will be above or below a
given value using the standard normal distribution.
EIGHT
Use the normal distribution to approximate the binomial probability
distribution.
Goals
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A Discrete distribution A Continuous

is based on random distribution usually
variables which can results from measuring
assume only clearly something.
separated values.

Discrete distributions Continuous distributions

studied include: include:
o Binomial o Uniform
o Hypergeometric o Normal
o Poisson. o Others

Discrete and continuous

distributions
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f(x)
The Uniform distribution
Is rectangular in shape
Is defined by minimum and

maximum values x
Has a mean computed as
= a + b
follows:
2
Hasa standard deviation
computed as follows: where a and b are
the minimum and
maximum values
=
(b-a)2
12
The uniform distribution
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Calculates its height as

P(x) = 1 if a < x < b and 0 elsewhere

(b-a)

Calculates its area as

1
Area = height* base =(b-a) *(b-a)

The uniform distribution

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Suppose the time What is the mean wait time?

that you wait on the
telephone for a live = a + b
2
representative of 5+25
your phone company = = 15
2
to discuss your What is the standard
problem with you is deviation of the wait time?
uniformly
distributed between (b-a)2
=
5 and 25 minutes. 12
= (25-5) 2
= 5.77
12

Example 1
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What is the probability of waiting more than ten minutes?

The area from 10 P(10 < wait time < 25) = height*base
to 25 minutes is = 1
15 minutes. (25-5) *15 = .75
Thus:
What is the probability of waiting between 15 and 20
minutes?
The area from 15 P(15 < wait time < 20) = height*base
to 20 minutes is = 1
5 minutes. Thus: *5 = .25
(25-5)
Example 2 continued
 7- 9

The Normal probability distribution

is bell-shaped and has a single peak at the

center of the distribution.
Is symmetrical about the mean.
is asymptotic. That is the curve gets closer and
closer to the X-axis but never actually touches it.
Has its mean, , to determine its location and
its standard deviation, , to determine its
dispersion.
 7- 10
r a l i t r b u i o n :  = 0 ,  = 1

Characteristics of a Normal Distribution

0 . 4

Normal Theoretically,
0
curve is
. 3
curve extends to
symmetrical infinity

0 . 2
f ( x

0 . 1

. 0

- 5
a
Mean, median, and
x

mode are equal

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The standard
normal distribution It is also called the
is a normal distribution
with a mean of 0 and a
z distribution.
standard deviation of 1.
A z-value is the distance between a selected
value, designated X, and the population mean ,
divided by the population standard deviation, .
The formula is:

X 
z 
 The Standard Normal
Probability Distribution
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The bi-monthly
X  starting salaries of
z recent MBA
M BA
 graduates follows
the normal
distribution with a
= $2,200 - $2000 mean of $2,000 and
$200 a standard deviation
of $200. What is
= 1.00
the z-value for a
salary of $2,200?

Example 2
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What is the X 
z
z-value for 
$1,700? $1,700  $2,000
  1.50
$200

A z-value of 1 indicates that the value of

$2,200 is one standard deviation above the
mean of $2,000. A z-value of –1.50
indicates that $1,700 is 1.5 standard deviation
below the mean of $2000.
EXAMPLE 2 continued
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About 68 percent of
the area under the
normal curve is within
one standard deviation
of the mean.
 + 1

About 95 percent is within two standard

deviations of the mean.
 + 2
Practically all is within three standard
deviations of the mean.
 + 3 Areas Under the Normal
Curve
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The daily water usage per

person in New Providence,
New Jersey is normally
distributed with a mean of
20 gallons and a standard
deviation of 5 gallons.
About 68 percent of those
living in New Providence
will use how many gallons
of water?
About 68% of the daily
water usage will lie between
15 and 25 gallons (+ 1 ).
Example 3
 RH O DE 7- 16
295 IS L A N D
P r o v id e n c e
S c itu a te
What is the probability that
Res

W a r w ic k
a person from New
Providence selected at
95
random will use between 20
N e w p o rt
and 24 gallons per day?

X  24  20
z    0.80
 5

X  20  20
z    0.00
 5
EXAMPLE 4
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The area under a normal

curve between a z-value of
0 and a z-value of 0.80 is
0.2881.
See the following diagram
We conclude that 28.81
percent of the residents use
between 20 and 24 gallons
of water per day.

Example 4 continued
7- 18
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What percent of
the population use
between 18 and 26
gallons per day?

X  26  20
z    1.20
 5

X  18  20
z   0.40
 5
EXAMPLE 4 continued
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The area The area

associated with a associated with a
z-value of –0.40 z-value of 1.20 is
is .1554.
Adding these
.3849.
areas, the result is

.5403.

We conclude that 54.03 percent of the

residents use between 18 and 26 gallons
of water per day.
EXAMPLE 4 continued
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Professor Mann has

determined that the scores
in his statistics course are
approximately normally
distributed with a mean of
72 and a standard
deviation of 5. He
announces to the class that
the top 15 percent of the
scores will earn an A.
What is the lowest score a
student can earn and still
receive an A?
EXAMPLE 5
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To begin let X be the score that

separates an A from a B.
If 15 percent of the students score
more than X, then 35 percent must
score between the mean of 72 and X.

The z-value associated corresponding to 35

percent is about 1.04.

EXAMPLE 5 continued
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We let z equal 1.04 and

solve the standard normal
equation for X. The result
is the score that separates
students that earned an A
from those that earned a B.
Those with a
score of 77.2 or
more earn an A.

X  72
1.04 
5
X  72  1.04(5)  72  5.2  77.2

EXAMPLE 5 continued
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The normal distribution

(a continuous
distribution) yields a
good approximation of The normal probability
the binomial distribution is generally a
distribution (a discrete good approximation to the
distribution) for large binomial probability
values of n. distribution when n and
n(1-  ) are both greater
than 5.

The Normal Approximation

to the Binomial
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Recall for the binomial experiment:

oThere are only two mutually exclusive

outcomes (success or failure) on each trial.

oA binomial distribution results from counting

the number of successes.

oEach trial is independent.

oThe probability is fixed from trial to trial, and

the number of trials n is also fixed.
The Normal Approximation
continued
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Continuity Correction Factor

The value .5 subtracted or added, depending on

the problem, to a selected value when a
binomial probability distribution (a discrete
probability distribution) is being approximated
by a continuous probability distribution (the
normal distribution).

Continuity Correction Factor

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How to Apply the Correction Factor:

For the probability that For the probability at least X
more than X occur, use occur, use the area above
the area above (X+.5). (X-.5).

For the probability For the probability

that fewer than X that X or fewer
occur, use the area occur, use the area
below (X-.5). below (X+.5).

Continuity Correction Factor

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A recent study by a
marketing
research firm
showed that 15%
of American
households owned
a video camera.
For a sample of   n  (.15)(200)  30
200 homes, how
many of the homes
This is the mean of a
would you expect
binomial distribution.
to have video
cameras?
EXAMPLE 6
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What is the variance?

  n (1   )  (30)(1.15)  255
2
.
What is the standard deviation?

  25.5  5.0498
EXAMPLE 6 continued
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What is the
We use the correction
probability
factor (X-.5) for fewer
that less
than, so X-.5 is 39.5.
than 40
The value of z is 1.88.
homes in
the sample
have video
cameras? X   39.5  30.0
z   1.88
 5.0498

EXAMPLE 6 continued
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From Appendix D the area between 0 and 1.88

on the z scale is .4699.

So the area to the left of 1.88 is .5000 + .4699

= .9699.

Thelikelihood that less than 40 of the 200

homes have a video camera is about 97%.

EXAMPLE 6 continued
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