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References

“Naegele’s rule.” Wikipedia. Available online at http://en.wikipedia.org/wiki/Naegele's_rule (accessed May 14, 2013).

“403: NUMMI.” Chicago Public Media&Ira Glass, 2013. Available online at http://www.thisamericanlife.org/radio-archives/episode/403/nummi (accessed May 14, 2013).

“Scratch-Off Lottery Ticket Playing Tips.” WinAtTheLottery.com, 2013. Available online at http://www.winatthelottery.com/public/department40.cfm (accessed May 14, 2013).

“Smart Phone Users, By The Numbers.” Visual.ly, 2013. Available online at http://visual.ly/smart-phone-users-numbers (accessed May 14, 2013).

“Facebook Statistics.” Statistics Brain. Available online at http://www.statisticbrain.com/facebook-statistics/(accessed May 14, 2013).

Chapter review

The normal distribution, which is continuous, is the most important of all the probability distributions. Its graph is bell-shaped. This bell-shaped curve is used in almost all disciplines. Since it is a continuous distribution, the total area under the curve is one. The parameters of the normal are the mean µ and the standard deviation σ . A special normal distribution, called the standard normal distribution is the distribution of z -scores. Its mean is zero, and its standard deviation is one.

Formula review

Normal Distribution: X ~ N ( µ , σ ) where µ is the mean and σ is the standard deviation.

Standard Normal Distribution: Z ~ N (0, 1).

Calculator function for probability: normalcdf (lower x value of the area, upper x value of the area, mean, standard deviation)

Calculator function for the k th percentile: k = invNorm (area to the left of k , mean, standard deviation)

How would you represent the area to the left of one in a probability statement?

P ( x <1)

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What is the area to the right of one?

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Is P ( x <1) equal to P ( x ≤ 1)? Why?

Yes, because they are the same in a continuous distribution: P ( x = 1) = 0

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How would you represent the area to the left of three in a probability statement?

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What is the area to the right of three?

1 – P ( x <3) or P ( x >3)

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If the area to the left of x in a normal distribution is 0.123, what is the area to the right of x ?

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If the area to the right of x in a normal distribution is 0.543, what is the area to the left of x ?

1 – 0.543 = 0.457

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Use the following information to answer the next four exercises:

X ~ N (54, 8)

Find the probability that x >56.

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Find the probability that x <30.

0.0013

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Find the 80 th percentile.

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Find the 60 th percentile.

56.03

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X ~ N (6, 2)

Find the probability that x is between three and nine.

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X ~ N (–3, 4)

Find the probability that x is between one and four.

0.1186

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X ~ N (4, 5)

Find the maximum of x in the bottom quartile.

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Use the following information to answer the next three exercise: The life of Sunshine CD players is normally distributed with a mean of 4.1 years and a standard deviation of 1.3 years. A CD player is guaranteed for three years. We are interested in the length of time a CD player lasts. Find the probability that a CD player will break down during the guarantee period.

  1. Sketch the situation. Label and scale the axes. Shade the region corresponding to the probability.
    Empty normal distribution curve.
  2. P (0< x <____________) = ___________ (Use zero for the minimum value of x .)
  1. Check student’s solution.
  2. 3, 0.1979
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Find the probability that a CD player will last between 2.8 and six years.

  1. Sketch the situation. Label and scale the axes. Shade the region corresponding to the probability.
    Empty normal distribution curve.
  2. P (__________< x <__________) = __________
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Find the 70 th percentile of the distribution for the time a CD player lasts.

  1. Sketch the situation. Label and scale the axes. Shade the region corresponding to the lower 70%.
    Empty normal distribution curve.
  2. P ( x < k ) = __________ Therefore, k = _________
  1. Check student’s solution.
  2. 0.70, 4.78 years
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Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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