Scribd Logo
Upload

Welcome to Scribd!

  • 72 views

    Application of Normal Distribution

    Uploaded by

    Ceejay Frillarte
    The document discusses three problems involving calculating probabilities from normally distributed data. Problem 1 calculates the probability that employees' loan amounts are less than $18,500, given a mean of $23,000 and standard deviation of $2,500. It finds the probability is 3.59%. Problem 2 finds the probability that a randomly selected bank manager's age will be between 35-46 years, given a mean age of 40 years and standard deviation of 5 years. The probability is 72.62%. Problem 3 asks to find the lowest test score needed to qualify for a master's program, where candidates must score in the top 20% of a test with mean 180 and standard deviation 25. It determines the

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Application of Normal Distribution

    Uploaded by

    Ceejay Frillarte
    72 views13 pages
    The document discusses three problems involving calculating probabilities from normally distributed data. Problem 1 calculates the probability that employees' loan amounts are less than $18,500, given a mean of $23,000 and standard deviation of $2,500. It finds the probability is 3.59%. Problem 2 finds the probability that a randomly selected bank manager's age will be between 35-46 years, given a mean age of 40 years and standard deviation of 5 years. The probability is 72.62%. Problem 3 asks to find the lowest test score needed to qualify for a master's program, where candidates must score in the top 20% of a test with mean 180 and standard deviation 25. It determines the

    Original Description:

    Original Title

    Application of normal distribution

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses three problems involving calculating probabilities from normally distributed data. Problem 1 calculates the probability that employees' loan amounts are less than $18,500, given a mean of $23,000 and standard deviation of $2,500. It finds the probability is 3.59%. Problem 2 finds the probability that a randomly selected bank manager's age will be between 35-46 years, given a mean age of 40 years and standard deviation of 5 years. The probability is 72.62%. Problem 3 asks to find the lowest test score needed to qualify for a master's program, where candidates must score in the top 20% of a test with mean 180 and standard deviation 25. It determines the

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    72 views13 pages

    Application of Normal Distribution

    Uploaded by

    Ceejay Frillarte
    The document discusses three problems involving calculating probabilities from normally distributed data. Problem 1 calculates the probability that employees' loan amounts are less than $18,500, given a mean of $23,000 and standard deviation of $2,500. It finds the probability is 3.59%. Problem 2 finds the probability that a randomly selected bank manager's age will be between 35-46 years, given a mean age of 40 years and standard deviation of 5 years. The probability is 72.62%. Problem 3 asks to find the lowest test score needed to qualify for a master's program, where candidates must score in the top 20% of a test with mean 180 and standard deviation 25. It determines the

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 13

    STATISTICAL ANALYSIS

    ELENA P. FERRER
    Lecturer III
    Application of Normal
    Distribution
    Recall
    •
    Problem #1
    •The average PAGIBIG Salary loan for EPF Pharmacy
    Inc. employees is P23,000. If the debt is normally
    distributed with a standard deviation of P2,500, find
    the probability that the employees owes less than
    P18,500.
    • The average PAGIBIG Salary loan for EPF
    Pharmacy Inc. employees is P23,000. If the
    debt is normally distributed with a standard
    deviation of P2,500, find the probability that
    the employees owes less than P18,500.
    Step 3
    Find the appropriate area using the z-table.
    Note : Area between z = 0 and z = -1.80
    Area is 0.4641

    Step 4
    Subtract 0.4641 from 0.5
    P( x < 18500) = 0.5 – 0.4641
    = 0.0359
    Hence , the probability that the
    employee owes less than P18500 in
    PAGIBIG Salary loan is 0.0359 or 3.59%
    Problem #2
    • The average age of bank managers is 40 years. Assume the variable is
    normally distributed. If the standard deviation is 5 years, find the
    probability that the age of a randomly selected bank manager will be
    in the range between 35 and 46 years old.
    • The average age of bank managers is 40
    years. Assume the variable is normally
    distributed. If the standard deviation is 5
    years, find the probability that the age of a
    randomly selected bank manager will be in
    the range between 35 and 46 years old.
    Step 3.
    Find the appropriate area for z = -1.00 and z = 1.20 using z table
    Area for P(-1.00 < z <0) = 0.3413
    Area for P ( 0 < z <1.20) = 0.3849

    Step 4
    Add the two areas
    Total Area = P(-1.00 < z <0) + P ( 0 < z <1.20)
    = 0.3413 + 0.3849
    = 0.7262

    Hence, the probability that a randomly selected


    bank manager is between 35 and 46 years old is
    0.7262 or 72.62%
    Problem #3
    • To qualify for a Master’s degree program in Business Administration
    at a certain school, candidates must score in the top 20% on a mental
    ability test. The test has a mean of 180 and a standard deviation of
    25. Find the lowest possible score to qualify. Assume the test scores
    are normally distributed.
    To qualify for a Master’s degree program in Business
    Solution: Administration at a certain school, candidates must
    score in the top 20% on a mental ability test. The test
    has a mean of 180 and a standard deviation of 25. Find
    the lowest possible score to qualify. Assume the test
    scores are normally distributed.

    Step 1
    Determine the area under the normal
    distribution between 180 and x.
    Area = 0. 5 – 0.2
    = 0.3
    •

    0.84(25)
    + 180 = x
    A score of 201 should be used as a 201= x
    cut off. Anybody scoring 201 or
    higher qualifies for Master in
    Business Administration.
    ACTIVITY 11
    Check your classwork

    You might also like