EC255 Chapter Notes - Chapter 6: Standard Deviation, Random Variable
Document Summary
Probably the most widely known and used of all distributions. Many variables in business and industry are normally distributed. Cost per square foot of renting warehouse space. Managers" satisfaction with support from ownership on a five point. Because of many applications, the normal distribution is extremely important. Spread is determined by the standard deviation, . The random variable has an infinite theoretical range: from + to - scale. Probability density of the normal distribution f x( Probability is measured by the area under the curve. Since there is an infinite number of combinations for and , we can generate an infinite family of curves. Hard to deal with all of these normal distributions. However, all normal distributions can be converted into a single distribution called the z distribution. Z distribution: yields the standardized normal distribution (or curve) The conversion formula for any x value of a given normal distribution is given below z=x- m s.
