Robiel H.

1
Statistics for management

1. THE CONCEPT OF PROBABILITY

Probability can be defined as a long run relative frequency.
We often think of the probability in terms of the percentage of the time the
experimental outcome would occur in many trials of the experiment. For instance,
when we say that the probability of obtaining a head when we toss a coin is 0.5,we
are saying that, when we repeatedly toss the coin an indefinitely large number of
times, we will obtain a head on 50% of the repetitions.

Probability deals with uncertain situations. The probability of an event is a number

that measures the chance, or likelihood, that the event will occur. The probability of
an event is always is always a number between zero and one.

When performing statistical studies, we sometimes collect data by performing a

controlled experiment. For instance, we might purposefully vary the operating
conditions of a manufacturing process in order to study the effects of these changes
on the process output. Some times we obtain data by observing uncontrolled events.
Example we might observe the closing price of a share of general Motors’s stock
ever day for 30 trading days. In refer to either method of data collection.

An experiment is any process of observation that has uncertain outcome. The

process must be defined so that on any single repetition of the experiment, one and
only one of the possible outcomes will occur. The possible outcomes for an
experiment are called experimental outcomes.

For example if the experiment consists of tossing a coin the experimental outcomes
are “head” and “tail”. We often wish to assign probabilities to experimental
outcomes. This can be done by several methods.

These two conditions must be met:

1. The probability assigned to each experimental outcome must be between 0 and 1.

That is if E represents an experimental outcome and if P(E) represents the
probability of this out come, then 0≤ p ≤ 1 .
2. The probabilities of all of the experimental outcomes must sum to 1.
 Robiel H. 2
Statistics for management

When all of the experimental outcomes are equally likely, we can use logic to assign
probabilities. This method is called classical method.
Sometimes it is difficult or impossible to use the classical method to assign
probabilities, since we can often make a relative frequency of probability.
Example: We might perform the, say 1000 times by surveying,1000 randomly
selected consumers, then if 200 of those surveyed said that they prefer coca cola, we
would estimate the probability that a randomly selected consumer prefers coca cola
to all other soft drinks to be 200/1000=0.2. This is called the relative frequency
method for assigning probability. When we use experience, intuitive, judgment, or
experience to asses a probability, we call this a subjective.
SAMPLE SPACE AND EVENTS
In order to calculate probabilities by using the classical method, it is important to
understand and use a sample space. The sample space of an experiment is the set of
all possible outcomes. The experimental outcomes in the sample space are often
called sample space outcomes. Example: if we toss a coin our sample space is Head
and Tail i.e. which consists of the two possible experimental outcomes. A newly
married couple plans to have two children (at different times). If B denote a bout
and G=girl denote. The sample space that is the set of all possible outcomes is four.
I.e. BB, BG GB, and GG.
In order to consider the probabilities of these outcomes, suppose that boys and girls
are equally likely each time a child is born. Institutively, this says that each of the
sample space outcomes is equally. That is this implies that
P (BB) =P (BB) = P (BB) =P (BB) =0.25.
An event is a set (collection) of sample space outcomes. For instance, if we consider
the couple planning to have two children, the event “the couple will have at least one
girl” consists of the sample space outcomes BG, GB, and GG. I.e. the event “the
couple will have at least one girl” will occur if and only if one of the sample
outcomes BG, GB, and GG occurs.
The probability of an event is the sum of the probabilities of the sample space
outcomes that correspond to the event. An event is any subject of the sample space.
If an event is denoted by A, then 0≤P (A) ≤1. If an event is certain to occur, then the
probability of this event equals 1.
In general, when a sample space is infinite we can use the following method for
computing the probability of an event. If all of the sample space outcomes are
equally likely, then the probability that an event will occur is equally to the ratio.
 Robiel H. 3
Statistics for management

the number of sample outcomes that corespond ¿ theevent ¿

t he total number of sample space outcomes

Event and their probabilities

1. Independent events: if the occurrence or non occurrence of one of the events
doesn’t affect the occurrence or non occurrence of the other events it is called
independent events. If two events are independent, the probability of attaining the 2nd
event is the same regard less of the out come of the 1st event. In terms of symbolic
notation, if X and Y are independent
P(X/Y) =P(X) if P(Y) ≠0
P(Y/X) =P(Y) if P(X) ≠0

Where: P(X/Y) denotes the probability of X occurring given that Y is already

occurred
P(Y/X) denotes the probability of Y occurring given that X is already
occurred
2. Dependent events: if the occurrence or non occurrence of one of the events affect
the occurrence or non occurrence of the other events it is called dependent events. If
two events are dependent, the probability of attaining the 2nd event is different if the
1st event already occurred. In terms of symbolic notation, if X and Y are
independent.

P(X/Y) ≠P(X) if P(Y) ≠0

P(Y/X) ≠P(Y) if P(X) ≠0
Where: P(X/Y) denotes the probability of X occurring given that Y is already
occurred
P(Y/X) denotes the probability of Y occurring given that X is already
occurred
3. Mutually exclusive events: Are also called disjoint event. If two events are not
simultaneously occurring9no intersection), it is called exclusive events. Example: if
the rain rains, it rains ∴ no rain at all will not occur.
Two or more events are mutually exclusive if the occurrence or non occurrence of
the first event precludes the occurrence or non occurrence of the second event. In
terms of symbolic notation If event X and Y are mutually exclusive, P (XnY) =0.
N.B
 Mutually exclusive events are necessarily dependent.
 Robiel H. 4
Statistics for management

 Dependent events may or may not be mutually exclusive events.

 Independent events are not exclusive events.

4. Collectively exhaustive events

 These are list of all possible out come of an experiment.
 Sample space is a list of collectively exhaustive events.
 The sum of sample space elements equals 1.
5. Complementary events
 The complement of an event A and it is denoted as complement Á , A1, Ac.
 The complement of an event A and the event itself form collectively exhaustive
events.
P(A1)=1-P(A)
Types of probability:
There are four types of probability;
1. Simple probability: - it is a straight forward type of probability which is
computed using the following.
n( A)
P (A) =
n
Where:
P (A) =probability of occurrence of event A.
n( A)= number of times event A has occurred.
n=¿ number of total opportunities.
Example : The probability of getting a head in tossing a coin infinitely.
2. Marginal probability:
 Is denoted as P(A)=where A is an event.
 Is computed by dividing some subtotal by a total (grand total).
 Is located in the margin of a joint probability.
Example: ABC Company manufactures window air conditioners in both a deluxe
model (D) and a standard model(S). an auditor engaged in a compliance audit of the
firm is validating the sales account for the month April. She has collected 200
invoices for the month, some of which were sent to wholesalers (W) and the
remainders to retailers(R). of the 140 retail invoices, 28 are for standard model. Only
24 of the wholesale invoices are for the standard model. If the auditor selects one
invoice at random, find the following probabilities:
A. The invoice selected is for the deluxe model.
 Robiel H. 5
Statistics for management

B. The invoice selected is for the standard model.

C. The invoice selected is for the wholesale model.
D. The invoice selected is for the retail model.
Solution:
n(D) 148 ¿ ¿
A. P (D) = = 200 = 0.74
n
n( S) 52 P (D) +P (S) =1 Because they are
B. P (S) = = 200 = 0.26
n

C. P (W) =
n(W ) 60
= 200 = 0.0.3 P (W) +P (R) =1 complementary
n
n(R) 140
D. P (R) = = 200 = 0.70
n

Wholesale retail Total

Deluxe-D 36(0.18) 112(0.56) 148(0.74)
Standard-S 240(.12) 28(0.14) 52(0.26)
Total 60(0.3) 140(0.70) 200

Joint probability
Marginal probability

3. Joint probability
 Is denoted by P (A∩B)
 Measures the probability of occurrence of to or more events
simultaneously.
 It measures the probability that an item posses two or more specified
characteristics.
The sum of joint probabilities must be 1:00
n(D ∩W ) 36
 P (D∩W)= = 200 =0.18
n
n(R ∩W )
P (R∩W) = = 0 because they are mitually ex clusive .
n

4. Conditional probability
 Robiel H. 6
Statistics for management

 Is denoted as P (A¿B) which is read as the probability that event “A”

will occure given that (provided that) event “B” has already occurred.
 It is calculated as by dividing joint probability by marginal probability.
P ( A ∩B) P (B / A) P( A)
 P (A¿B)= P(B) = P( B)
; P( B)≠ 0
P ( A ∩B) P ( A / B) P(B)
 P (B¿A)= P( A) = P (A )
; P( A)≠0
P( A ∩ B)= P( B/ A)P( A)=P(A / B) P( B)

Example: In DBU recently conducted a survey of undergraduate students in order to

gather information about the usage of library. The populations for this study
include all 4,000 undergraduate students enrolled in the university.
The library officers are interested in increasing usage, particularly among
females (F) and seniors (S) at the university. Of the 4,000 students, 800
students are seniors, 1800 students are females and 450 of the 1800 females
are seniors.
Required:
A. What is the probability that a student selected at random is a senior given that
the selected student is female?
B. What is the probability that a student selected at random is female given that
the selected student is senior?

Seniors(S) Non seniors(N) Total

Male 350 1,850 2,200
Female 450 1,350 1800
Total 800 3,200 4000

n (S ∩ F )
P (S ∩ F ) n n( S ∩ F) 450
A. P (S¿F)= P ( F) = n( F ) = n( F) = 1,800 =0.25
n
n (S ∩ F )
P (S ∩ F ) n n( S ∩ F) 450
B. P (F¿S)= P(S ) = n(S ) = n(S) = 800 =0.5625
n
BAYE’S THEOREM
 Robiel H. 7
Statistics for management

 Was developed around 1837 by an English clergy man Thomas Bayes (1702-
1761)
 Sometimes we have an initial or prior probability that an event will occur.
Then, based on new information, we revise the prior probability to what is
called posterior probability.
 It simplifies the computation of P (A¿B) when P( A ∩ B) and P (B) are not
directly given.
 It helps us to revise probabilities when new information is obtained.

There are two important probabilities:

1. Prior probability: A probability determined before new information obtained.
Usually it is determined using subjective method.
2. Revised probability: a probability computed after new information obtained.

Prior New Apply Bayes Revised

probability information Theorem probability
1. Bayes Rule for one event: conditional probability
P ( X i ∩Y )
P ( X i /¿Y) = P (Y ) ; P(Y )≠ 0
P (Y / X i )P( X i)
P ( X i /¿Y) = ; P(B)≠ 0
P(Y )
2. Bayes Rule for two events; X i=¿ X , X ¿ 1 2

P ( X i ∩Y )
P ( X i /¿Y) = P (Y ) ; P(Y )≠ 0
P(Y / X i) P(X i )
P ( X i /¿Y) = P X ∩Y + P X ∩Y
( 1 ) ( 2 )
P(Y / X i ) P( X i)
P ( X i /¿Y) = P (Y / X ) P( X )+ P(Y / X ) P (X )
1 1 2 2

3. Bayes Rule for three events; X i=¿ X , X , X ¿ 1 2 3

P ( X i ∩Y )
P ( X i /¿Y) = P (Y ) ; P ( X i ∩Y )=P (Y / X i ) P( X i)=P (X i /Y )P(Y )
P (Y / X i )P( X i) P(Y / X i) P(X i )
P ( X i /¿Y) = = P ( X 1 ∩Y ) + P ( X 2 ∩Y ) P ( X 3 ∩Y )
P(Y )
P (Y / X i )P( X i) P(Y / X i) P(X i )
P ( X i /¿Y) = = P (Y / X 1 ) P( X 1)+ P(Y / X 2) P (X 2 )+ P (Y / X 3 ) P( X 3)
P(Y )
 Robiel H. 8
Statistics for management

4. Bayes Rule for any events;

P (Y / X i )P( X i)
P ( X i /¿Y) = =
P(Y )
P(Y / X i) P( X i )
P (Y / X 1 ) P( X 1)+ P(Y / X 2)P ( X 2 )+ P (Y / X 3 ) P( X 3)+. … . P (Y / X 3 ) P( X 3)
Example: A company has three machines A, B, and C which all produce the same
two parts, X ad Y. of all the parts produce, machine a produces 60%,
machine B produces 30% and machine C produces the rest. 40% of the parts
made by machine a are part X, 50% of the parts made by machine A are part
X, 50% of the parts made by machine B are part X, and 70% of the parts
made by machine C are part X. a part produced by this company is randomly
selected and determined to be an X part. With the know ledge that it is an X
part, find the probabilities that the part came from machine A, B or C.
Solution:
P (A) =0.6 P (B) =0.3 P (C) =0.1
P (X¿A) =0.40 P (X¿B) =0.50 P (X¿C) =0.70
Required:
P (A¿X) =? P (B¿X) =? P (C¿X) =?
Method1. Bayes rule
P ( X / A)P (A ) P(X / A) P( A)
P (A¿X) = P(X )
= ; Because P(X )=
P ( X ∩ A )+ P ( X ∩ B ) + P ( X ∩C )
P ( X ∩ A ) + P ( X ∩B ) P ( X ∩C )
P(X / A)P ( A )
=
P ( X / A) P (A )+ P( X / B) P(B)P( X /C)P(C )
(0.40)( 0.60) 0.24
∴ P ( A / X )= = =0.52
( 0.40 ) ( 0.60 ) + ( 0.50 ) ( 0.30 ) +(0.70)( 0.10) 0.46
(0.50)( 0.30) 0.15
P( B/ X )= = 0.46 =0.33
0.46
(0.70)(0.10) 0.07
P(C / X )= = 0.46 =0.15
0.46

 P( A / X)=P(B / X )=P(C / X )=0.52+0.33+0.15=1.00

Method2. Probability table
Parts machines
A B C Total
X 0.24 0.15 0.07 0.46
 Robiel H. 9
Statistics for management

Y 0.36 0.15 0.03 0.54

Total 0.60 0.30 0.10 1.00

P (A) =0.6 P (B) =0.3 P (C) =0.1

P (X¿A) =0.40 P (X¿B) =0.50 P (X¿C) =0.70
P ( X ∩ A) 0.24
P (A¿X) = P( X) = 0.46 =0.52
P ( X ∩ B) 0.15
P (B¿X) = P( X ) = 0.46 =0.33
P ( X ∩C) 0.07
P (C¿X) = P(X ) = 0.46 =0.15
Method3. Bayesian table
The Bayesian table has the following four steps;
A. Prepare the following columns;
column 1.1 The mutually exclusive events for which posterior
probabilities are derived.
column 1.2 The prior probabilities for the event.
column 1.3 The conditional probabilities of the information given each
event.

B. Compute the joint probabilities for each event and the new information for
each event.
C. Sum the joint probabilities for each event and the new information by using
multiplication-column four.
D. In column five compute the posterior probabilities using the basic
relationships of conditional probabilities.

Event Prior New information Joint Revised

probability (conditional probability probability probability
P( Ei) P(X/ Ei) P(X∩ Ei ) P( Ei/ X )
A 0.60 0.40 0.24 0.24
=0.52
0.46
B 0.30 0.50 0.15 0.15
=0.33
0.46
C 0.10 0.70 0.07 0.07
=0.15
0.46
P ( X )=0.46 1.00
 s
p
t
O
e
c
u
d
A
6
B
3
C
(
P
.1
0
=
o
r
)
Method4. Tree diagram

Exercise: Find
P (A¿Y) =?

PROBABILITY DISTRIBUTION
BASIC CONCEPTS:
P (B¿Y) =? P (C¿Y) =?

Variable: any characteristic that can have numerical values (outcomes).

Robiel H. 10
Statistics for management

Random variable: a variable that assumes numerical values that are determined by
the outcome of an experiment, where one and only one numerical value is assigned
to each experimental outcome. Whose values are determined by chance.
There fore an experiment is carried out, if its outcome is uncertain.
There are two types of random variables:
A. Discrete random variable: a random variable in which its possible values ca n
be counted or listed. It may assume a finite number of possible values or the
possible values may take the form of a countable sequence or list as 0,1,2,3---
(countable infinite list).
 Robiel H. 11
Statistics for management

 Assumes a countable finite or countable infinite number of values.

 Records the result of counting of counting.
Example:The number of X of the next three customers entering a store who
will make a purchase. Here X could be 0, 1, 2, or 3.

B. Continuous random variable: a random variable that assume any numerical

value in one more interval on the rear number line.
 Assumes uncountable infinite number of values.
 Records the values of measurement.
Example: The weight (in kgs) of strawberry preserves dispensed by an automatic
filling machine in to a 16 ounce jar.
The time needed by a clerk to complete a task.
Probability distribution: is a model describing variation in a population. A
probability distribution of the random variable is a list of the values of the random
variable and their associated probabilities of occurrence.
.1 Binomial distribution
Is the most widely known of all discrete distributions.
Characteristics:
 The experiment involves n identical trials.
 Each trial has only two possible outcomes denoted as success or failure.
 Each trial is independent of the previous trials.
 The terms p and q remain constant throughout the experiment, where the
term p is the probability of getting a success on any one trial and the term
q(1-p) is the probability of getting a failure on any one trial.
 Any single trial of a binomial experiment contains only two possible outcomes.
These outcomes are labeled success or failure. Usually the outcome of interest to
the researcher is labeled as success.
In a binomial distribution experiment there are only two possible mutually
exclusive outcomes to any one trial (right-handed/left-handed, defective/good,
and male/female etc.)
The binomial distribution is a discrete distribution. In n identical trials, only x
success are possible, where X is a whole number between 0 and n. For example,
if five parts are randomly selected from a batch of parts, only 0,1,2,3,4, or 5
 Robiel H. 12
Statistics for management

defective parts are possible in that sample. In a sample of five parts, getting 2.714
defective parts is neither possible, nor getting eight defective parts possible.
If the population is large in comparison with the sample size, the effect of
sampling without replacement is minimal, and the independence assumption
essentially met. That is, p remains relatively constant. If the sample size n is less
than 55 of the population, the independence assumption is not of great concern.
Therefore the acceptable sample size for using the binomial distribution with
samples taken without replacement is n=≤5%N.

The binomial formula:

n! x n −x
P(x) =nC x Px qn− x = x !( n−x )! P q
Where:
n=the number of trials (or the number being sampled)
x=the number of successes desired
p=the probability of getting a success in one trial.
q=1-p=the probability of getting a failure in one trial.
Example: A study conducted by a given organization found that 65% of all financial
consumers are very satisfied with their primary financial institution. Suppose
40 financial consumers are sampled randomly. What is the probability that
exactly 23 of the 40 are very satisfied with their primary financial institution?
Solution:
n=40 p=0.65
x=23 q=1-p=0.35
n! x n −x
P(x) =nC x Px qn− x = x !( n−x )! P q
40 ! 23 40−23
P(X=23) =40 C 23 (0.65)23(0.35)40−23 = 23! (40−23)! ( 0.65) (0.35)
=0.0784
=7.84%
Example 2: According to the US bureau of the census, approximately 6% of all
workers in Jackson, Mississippi, are unemployed. In conducting a random
telephone survey in Jackson, what is the probability of getting two or fewer
unemployed workers in a sample of 20?
Solution this problem must be worked as the union of three problems.
 Robiel H. 13
Statistics for management

(1.) Zero unemployed, (2.) One unemployed, (3.) Two

X=0 X=1 unemployed, X=2
P=0.06 q=0.94 n=20
P(x) = P(x) = P(x) =
20! 20 ! 20 !
( 0.06)0 0.94(20−0) (0.06)1 0.94(20−1) (0.06)2 0.94 (20−2)
0 !(20−0)! 1! (20−1)! 2! (20−2) !
=0.2901 =0.3703 =0.2246
+ +
=0.8850
The telephone surveyor would get zero, one or unemployed workers 88.5% of the time
in a random sample of 20 persons.

2.2Poisson distribution
It is another discrete distribution. The binomial distribution describes a distribution
of two possible outcomes designated as success and failures from a given number of
trial, however the Poisson distribution focuses only on the number of discrete
occurrences over some interval or continuum.
 In short a Poisson distribution is a discrete distribution i.e. constructed from
the probability of occurrence of rare events over an interval.
Poisson formula:
λ x ℮− λ
P(X) =
x!
Where:
X=0, 1, 2, 3 -------= the number of occurrence per interval for which the
probability is being computed.
λ =long run average
℮=2.71828=base of natural logarithm.
Example: Suppose bank customers arrive randomly on weekday afternoons at an
average of 3.2 customers every 4 minutes. What is the probability of exactly
five customers in a four minutes interval on weekday afternoon?
Solution:
X=5
λ =3.2/4 minite
℮=2.71828
 Robiel H. 14
Statistics for management

λ x ℮− λ (3.2)5 ℮−3.2 ( 335.54 ) (0408)

P(X) = )= = = 0.1141=11.41%
x! 5! 120
Example: If a real estate office sells 1.6 houses on average week day and sales of
houses on weekdays are poisson distributed, what is the probability of selling
in;
I. Exactly four houses One day? III. More than five houses in a day?
II. No houses in one day? IV. Four houses in two days?
Solution:
I. Exactly four houses One day?
X=4 λ =1.6/day ℮=2.71828
λ x ℮− λ (1.6)4 ℮−1.6
P(X=4) = )= =¿ = 0.0551=5.51%
x! 5!
II. No houses in one day?
X=0 λ =3.2/4 minutes ℮=2.71828
λ x ℮− λ (1.6)0 ℮−1.6
P(X=0) = )= =¿ 0.2019=20.19%
x! 0!
III. More than five houses in a day?
X¿5 λ =3.2/4 minute ℮=2.71828
P(X¿5) =1- (P(x=0) + P(x=1) + P(x=2) +P(x=3) +P(x=4) +P(x=5))
Or P(X¿5) = P(x=6) + P(x=7) + P(x=8) +P(x=9) + - - - until the probability
becomes zero.
P(X¿5) = 0.0060=0.6%

2.3Hyper geometric distribution

Hyper geometric distribution is a distribution of probabilities of the occurrence of X
items in a sample of n when there are A of the same item in a population of N.
Characteristics of hyper geometric distribution:
 It is a discrete distribution.
 Each outcome consists of either a success or failure.
 Sampling is done without replacement.
 The population N is finite and known.
 The number of success in the population, A is known.
 Robiel H. 15
Statistics for management

 The hyper geometric distribution should be used instead of the binomial

distribution when:
 Sampling is being done without replacement and
 n≥5%N
Hyper geometric formula:
P(x) = ¿ ¿ ¿
Where:
N =population size. X= number of successes from the
n=sample size. sample.
A=number of successes from the
population.
Example: Suppose there are 18 major insurance companies in US and that 12 are
located in California’s Silicon Valley. If three computer companies are
randomly selected from the entire list, what is the probability that one or
more of the selected companies are located in the Silicon Valley?
Solution:
N =18 A=12
n=3 X≥1
P(X≥1) = P ( X=1 ) + P ( X =2 ) + P( X =3)
Sampling is done without replacement, and the sample size is 16.7% of the
population. Hence the problem is a candidate for the hyper geometric distribution.
P(X≥1) = P ( X=1 ) + P ( X =2 ) + P( X =3)
= ¿¿¿
=¿ ¿ ¿
=0.2206+0.4853+0.2696
=0.9755
Alternative solution method would be would be one minus the probability that none
of the companies is located in the Silicon Valley.
P(X≥1) =1- P ( X=0 )
12C 0 6 C 3
=1-
18C 3
=1-0.0245
=0.9755
Continuous probability distribution
Normal probability distribution
 Robiel H. 16
Statistics for management

A normal probability distribution has the following characteristics: it is

 A continuous distribution.
 A symmetrical distribution-bell shaped curve.
 Asymptotic to the X axis.
 Unimodal-values mound up in only one portion of the graph- the centre of the
curve.
 It is a family of curves.
 Area under the curve is 1.
Standard normal distribution: Z distribution is a distribution of Z scored produced
values from a normal distribution with a mean of 0 and standard deviation of 1.
X−μ
Z formula: Z= δ
Z score: the number of standard deviations a value x is above or
below the mean of a set of numbers when the data are normally
distributed.
Z distribution: a distribution of Z scores; a normal distribution with a
mean of 0 and standard deviation of 1.
Example: the Graduate Management Aptitude Test (GMAT) is
widely used by graduate school of business as an entrance
requirement. In one particular year, the mean score for the GMAT
was 494, with a standard deviation of 100. Assuming that GMAT
scores are normally distributed, what is the probability that a
randomly selected score from this administration of the GMAT:
A. Is between 600 and the mean?
B. Greater than 700?
C. Equal or Less to 550?
Solution: X−μ 600−494
A. P( 494 ≤ X ≤ 600)=? Z= δ = 100 =1.06
μ=494 δ =100
Z1.06 =0.3554
δ =100

μ=494 X =600
Z1.06
 Robiel H. 17
Statistics for management

0.355
4

B. P(X > 700)=? X−μ 700−494

μ=494 Z= δ = 100 =2.06
δ =100 Z2.06 =0.4803

δ =100

0.0197

μ=494 X =700
Z2.06

We know that the total area of the curve is 1.00 i.e. the first half 0.50 and the 2nd
half 0.50.
∴ 0.5000-0.4803=0.0197

Probability of X greater than700=The probability of X greater than the mean – probability of X between the mean∧700
C. P(X ≤ 550)=?
μ=494 X−μ 550−494
Z= δ = 100 =0.56
δ =100
Z 0.56=0.2123
δ =100

0.7123

μ=494 X =550
Z 0.56
 Robiel H. 18
Statistics for management

0.212
3

P(X ≤ 550)=0.5000+0.2123
=0.7123