BUEC 232 Lecture Notes - Lecture 10: Probability Plot, Interquartile Range, Probability Distribution

• School: Simon Fraser University
• Department: Business Economics
• Course: BUEC 232
• Professor: Andrew Flostrand

Document Summary

Probability distributions: finding the x value for a known probability, transformation formual: z = (x u) / o, steps to find the x value for a known probability, 1. Find the z value for the known probability: 2. 1. 33 o : is the range approximately 4 o, observe the distribution of the data set, do approx. 2/3 of the observations lie within the mean +-1 standard deviation: evaluate normal probability plot, is the normal probability plot approximately linear with positive slope, constructing a normal probability plot, quartile-quartile plot, 1. Convert order values to quantile values (z: 3. Plot the pairs of points with observed data values (x) on the vertical axis and the standardized normal quantile values (z) on the horizontal axis: 4. Evaluate the plot for evidence of linearity: converting order values to z values, 1. Let number of observations = n: 2.