40- 30- 20- 10- 4000 8000 12000 16000 20000 Salary (thousands of dollars) Aouenbas
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
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Assume that we want to construct a confidence interval. Which letter is correct? The confidence level is 99%, σ=3624 thousand dollars, and the histogram of 60 player salaries (in thousands of dollars) of footbal players on a team is as shown. a) find the critical value tα/2 b) find the critical value zα/2 c) neither the |
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