CONTINUOUS PROBABILITY DISTRIBUTION FS0102 INTRODUCTION TO STATISTICS LECTURE 7 GOALS 1. Understand the difference between discrete and continuous distributions. 2. Compute the mean and the standard deviation for a uniform distribution. 3. Compute probabilities by using the uniform distribution. 4. List the characteristics of the normal probability distribution. 5. Define and calculate z values. (Reference: Chapter 7 of Textbook) FS0102 FS0102 L7 - 2 Discrete VS Continuous Distributions Discrete Probability Distribution Continuous Probability Distribution The Normal Distribution - Graphically 1. It is bell-shaped and has a single peak at the center of the distribution. 2. Mean = Median = Mode FS0102 5 L7 - 5 The Normal Distribution - Graphically 4. It is symmetrical about the mean. 5. under the normal curve is to the right of this center point and the other half to the left of it. 6. The total area under the curve is 1.00; half the area 0.5 FS0102 6 L7 - 6 The Normal Distribution - Graphically 6. It is asymptotic: The curve gets closer and closer to the X-axis but never actually touches it. To put it another way, the tails of the curve extend indefinitely in both directions. 7. The location of a normal distribution is determined by the mean(), the dispersion or spread of the distribution is determined by the standard deviation (σ) . FS0102 7 L7 - 7 The Normal Distribution - Families FS0102 L7 - 8 You Try: Practice 7A Match the following to the items labelled A-C: • 30% • 50% • 100% • Mean • Variance • Standard Deviation Total area under graph = A% Area to the right of the middle = B% C Z 9 FS0102 9 You Try: Practice 7A Match the following to the correct coloured graph: • Lowest mean • Highest standard deviation 10 FS0102 10 The Empirical Rule • About 68 percent of the area under the normal curve is within one standard deviation of the mean. • About 95 percent is within two standard deviations of the mean. • Practically all (99.7%) is within three standard deviations of the mean. 11 FS0102 L7 - 11 11 The Standard Normal Probability Distribution • The standard normal distribution is a normal distribution with a mean of 0 and a standard deviation of 1. • It is also called the 𝑧 distribution. • A 𝑧-value is the signed distance between a selected value, designated 𝑋, and the population mean , divided by the population standard deviation, σ. FS0102 13 L7 - 13 The Standard Normal Probability Distribution • The 𝑧-value is the ratio of difference between a selected value and population mean and σ. i.e. 𝑧-value is the difference of a selected value and mean express as the number of times of σ. • E.g. z = 1.5 means the difference is 1.5 times of σ • The formula is: FS0102 14 L7 - 14 Standardize Normal Distribution • Suppose we have a normal distribution. We 𝑋−𝜇 apply 𝑍 = 𝜎 • This normal distribution is then transformed from N(μ , σ2). to N(0, 1): • When 𝑥 = 𝜇 then 𝑧 = 𝜇–𝜇 𝜎 When 𝑥 = 𝜇 + 𝜎 then 𝑧 = = 0. 𝜇+𝜎 −𝜇 𝜎 = 1. This process is called standardization of normal distribution. This can be seen in the diagram: 15 FS0102 L7 - 15 15 The Normal Distribution – Example The weekly incomes of shift foremen in the glass industry follow the normal probability distribution with a mean of $1,000 and a standard deviation of $100. What is the z value for the income, let’s call it X, of a foreman who earns $1,100 per week? For a foreman who earns $900 per week? For X = 1100 : X − 1100 − 1000 = + 1.00 100 For X = 900 : Z= FS0102 Z= X − = = 900 − 1000 = − 1.00 100 Normal Distribution – Finding Probabilities In an earlier example we reported that the mean weekly income of a shift foreman in the glass industry is normally distributed with a mean of $1,000 and a standard deviation of $100. Z What is the probability of selecting a foreman whose weekly income is between $1,000 and $1,100? 17 FS0102 X L7 - 17 17 Normal Distribution – Finding Probabilities X Z X FS0102 18 L7 - 18 Normal Distribution – Finding Probabilities (Example 2) Refer to the information regarding the weekly income of shift foremen in the glass industry. The distribution of weekly incomes follows the normal probability distribution with a mean of $1,000 and a standard deviation of $100. What is the probability of selecting a shift foreman in the glass industry whose income is: Between $790 and $1,000? Less than $790? 20 FS0102 L7 - 20 20 Normal Distribution – Finding Probabilities (Example 2) Refer to the information regarding the weekly income of shift foremen in the glass industry. The distribution of weekly incomes follows the normal probability distribution with a mean of $1,000 and a standard deviation of $100. What is the probability of selecting a shift foreman in the glass industry whose income is: Between $790 and $1,000? 21 FS0102 Z X L7 - 21 21 Normal Distribution – Finding Probabilities (Example 3) Refer to the information regarding the weekly income of shift foremen in the glass industry. The distribution of weekly incomes follows the normal probability distribution with a mean of $1,000 and a standard deviation of $100. What is the probability of selecting a shift foreman in the glass industry whose income is: Less than $790? 22 FS0102 22 You Try! (Offline Practice) Refer to the information regarding the weekly income of shift foremen in the glass industry. The distribution of weekly incomes follows the normal probability distribution with a mean of $1,000 and a standard deviation of $100. What is the probability of selecting a shift foreman in the glass industry whose income is: Between $840 and $1,200? 23 FS0102 Z 23 Normal Distribution – Finding Probabilities (Example 4) Refer to the information regarding the weekly income of shift foremen in the glass industry. The distribution of weekly incomes follows the normal probability distribution with a mean of $1,000 and a standard deviation of $100. What is the probability of selecting a shift foreman in the glass industry whose income is: Between $840 and $1,200? 𝑃 𝑧 = −1.6 = 0.4452, 𝑃 𝑧 = 2 = 0.4772 𝑃 840 ≤ 𝑥 ≤ 1200 = 0.4452 + 0.4772 = 0.9224 24 FS0102 Z 24 You Try! (Offline Practice) Refer to the information regarding the weekly income of shift foremen in the glass industry. The distribution of weekly incomes follows the normal probability distribution with a mean of $1,000 and a standard deviation of $100. What is the probability of selecting a shift foreman in the glass industry whose income is: Between $1,150 and $1,250 25 FS0102 L7 - 25 25 Normal Distribution – Finding Probabilities (Example 5) Refer to the information regarding the weekly income of shift foremen in the glass industry. The distribution of weekly incomes follows the normal probability distribution with a mean of $1,000 and a standard deviation of $100. What is the probability of selecting a shift foreman in the glass industry whose income is: Z Between $1,150 and $1,250 𝑃 𝑧 = 1.5 = 0.4332, 𝑃 1150 ≤ 𝑥 ≤ 1250 26 FS0102 𝑃 𝑧 = 2.5 = 0.4938 = 0.4938 − 0.4332 = 0.0606 L7 - 26 26 XZP Problems – A Summary 1. Draw diagram a) b) c) Mean in the m____ Place given 𝑥 value (what is 𝑥?) Shade the area corresponding to the required probability. 2. Find z value: 𝑧 = a) 𝑧 is the ________________ 3. Use 𝑧 to find the p_______ from the n______________ 4. Check again the required a____ 5. Add or subtract accordingly for the required probability. or You Try – Practice 7B Q P The masses of chocolates sold at Willy’s Choc Shop follows a normal distribution with 𝜇 = 320g and 𝜎 = 15.7g. A R B S C 1. What is the probability that Charlie will buy a packet of chocolate weighing less than 350g? Sketch the normal distribution curve, indicating on the diagram the location of 350g and shade the required area. 28 FS0102 1. 2. 3. 2. The mean is located at _____. The value of the mean is _____. I will put "350g" at _____. Referring to the diagram above, the area that corresponds to the probability that "Charlie will buy a packet of chocolate weighing less than 350g" is __________. L7 - 28 28 You Try – Practice 7B Q P The masses of chocolates sold at Willy’s Choc Shop follows a normal distribution with 𝜇 = 320g and 𝜎 = 15.7g. What is the probability that Charlie will buy a packet of chocolate weighing less than 350g? Calculate the value of z, find its corresponding probability value and hence find P(weight < 350g). 29 FS0102 A R B S C Question 3 a) Write your answer for z correct to 2 decimal places. z = _________ b) Write your answer for P(z) correct to 4 decimal places. From table, P(z) = _________ c) P(Charlie will buy a packet of chocolate weighing less than 350g) = _________ L7 - 29 29 Using Z in Finding X Given Area - Example Layton Tire and Rubber Company wishes to set a minimum mileage guarantee on its new MX100 tire. Tests reveal the mean mileage is 67,900 with a standard deviation of 2,050 miles and that the distribution of miles follows the normal probability distribution. It wants to set the minimum guaranteed mileage so that no more than 4 percent of the tires will have to be replaced. What minimum guaranteed mileage should Layton announce? 31 FS0102 L7 - 31 31 Mean mileage is 67,900, standard deviation of 2,050 Lowest 4% Using Z in Finding X Given Area - Example • 4% mileage on the left • However, the z value corresponds to P = 0.5 − 0.04 = 0.46 • From table, 𝑃 = 0.46 → 𝑍 = −1.75 • Negative since z is to the left of the mean • When 𝑍 = −1.75, −1.75 = 𝑋 − 67900 2050 𝑋 = 67900 − 1.75 × 2050 𝑋 = 64312 FS0102 33 L7 - 33 You Try – Practice 7C If the mean height of JCU students is 1.62 m with a standard deviation of 0.095 m, a) which area corresponds to the tallest 4.75% of the student population? b) Let the top 4.75% of the student population be of at least height h. What is the probability that a randomly chosen student has a height between mean and x, P(μ < x < h) 34 FS0102 L7 - 34 34 You Try – Practice 7C If the mean height of JCU students is 1.62 m with a standard deviation of 0.095 m, c) State the z value that corresponds to the least height of the top 4.75% of the student population. d) Calculate the least height of the top 4.75% of the student population. 35 FS0102 L7 - 35 35