CHAPTER7 Continuous Probability distributions to accompany Introduction to business statistics fourth edition by ronald m. weiers Presentation by priscilla chaffe-Stengel Donald N. Stengel o 2002 The Wadsworth Group
CHAPTER 7 Continuous Probability Distributions to accompany Introduction to Business Statistics fourth edition, by Ronald M. Weiers Presentation by Priscilla Chaffe-Stengel Donald N. Stengel © 2002 The Wadsworth Group
l Chapter 7-learning objectives Differentiate between the normal and the exponential distributions Use the standard normal distribution and z-scores to determine probabilities associated with the normal distribution Use the normal distribution to approximate the binomial distribution Use the exponential distribution to determine related probabilities o 2002 The Wadsworth Group
Chapter 7 - Learning Objectives • Differentiate between the normal and the exponential distributions. • Use the standard normal distribution and z-scores to determine probabilities associated with the normal distribution. • Use the normal distribution to approximate the binomial distribution. • Use the exponential distribution to determine related probabilities. © 2002 The Wadsworth Group
l Chapter 7-Key terms Probability density function Probability distributions Standard normal distribution >Mean, variance, applications Exponential distribution >> Mean, variance, applications Normal approximation to the binomial distribution o 2002 The Wadsworth Group
Chapter 7 - Key Terms •Probability density function •Probability distributions – Standard normal distribution »Mean, variance, applications – Exponential distribution »Mean, variance, applications • Normal approximation to the binomial distribution © 2002 The Wadsworth Group
l Chapter 7-Key concept The area under a probability density function between two bounds, a and b, is the probability that a value will occur within the bounded interval between a and b o 2002 The Wadsworth Group
Chapter 7 - Key Concept •The area under a probability density function between two bounds, a and b, is the probability that a value will occur within the bounded interval between a and b. © 2002 The Wadsworth Group
l The Normal distribution An important family of continuous distributions Bell-shaped, symmetric, and asymptotic To specify a particular distribution in this family, two parameters must be given Mean Standard deviation C 2002 The Wadsworth Group
The Normal Distribution • An important family of continuous distributions • Bell-shaped, symmetric, and asymptotic • To specify a particular distribution in this family, two parameters must be given: – Mean – Standard deviation © 2002 The Wadsworth Group