Quantitative Business Analysis QBA 121 Lecture Notes - Lecture 1: Standard Deviation, Random Variable, Binomial Distribution
7 Sep 2016
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Document Summary
The bell curve is known as a normal distribution. The normal distribution is perfectly symmetric about its mean. Its spread is determined by the value of its standard deviation. Probability distribution for a normal random variable x. Probability density function: f(x) = 1/( ) * e^(1/2)[(x - )/ ]^2. = mean of the normal random variable x. P(x < a) is obtained from a table of normal probabilities or using statistical software. The standard normal distribution is a normal distribution with = 0 and. A random variable with a standard normal distribution, denoted by the symbol z, is called a standard normal random variable. To apply the table, you must convert the value of x to a z-score. The z-score gives the distance between a measurement and the mean in units equal to the standard deviation z = x - z is always normally distributed with mean 0 and standard deviation. Using a normal distribution to approximate binomial probabilities.
