MAT 316 Lecture Notes - Lecture 9: Actuarial Credentialing And Exams, Probability Plot, Standard Deviation
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Note: the parameters and are the mean and variance of this distribution. Warning: in your statistics class, you probably defined the 2nd parameter as the standard deviation rather than the variance. In this class, the variance is far more important than the standard deviation, so that is how we will define the. Be very careful when you read the problems; sometimes they give you the standard deviation, and sometimes they give you the variance. Since the standard deviation is easier to interpret, we usually do write the variance as the standard deviation squared. Standardized test scores (sat, gre, iq, etc. ) Means and sums (this is why the normal distribution is so important in statistics. ) The inflection points are at one standard deviation away from the mean in both directions. No matter what the mean and standard deviation are, the amount of area within k standard deviations of the mean is always the same.
