Example 6.22 From book: Concentrations of pollutants produced by chemical plants historically are known to exhibit behavior that resembles a lognormal distribution. This is important when one considers issues regarding compliance with government regulations. Suppose it is assumed that the concentration of a certain pollutant, in parts per million, has a lognormal distribution with parameters μ = 3.2 and σ = 1. What is the probability that the concentration exceeds 8 parts per million? Let the random variable X be pollutant concentration. Then = P(X8) 1- P(X ≤8). o : Since ln(X) has a normal distribution with mean μ = 3.2 and standard deviation σ = 1, [In(8) 3.21 P(X ≤ 8) = $ =(-1.12) = 0.1314. 1 = 1-P(X ≤8) 1-0.1314 = 0.8686 = 86.86% 8/10

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Example 6.22 From book:
Concentrations of pollutants produced by chemical plants historically are known to
exhibit behavior that resembles a lognormal distribution. This is important when
one considers issues regarding compliance with government regulations. Suppose
it is assumed that the concentration of a certain pollutant, in parts per million,
has a lognormal distribution with parameters μ = 3.2 and σ = 1. What is the
probability that the concentration exceeds 8 parts per million?
Let the random variable X be pollutant concentration. Then
=
P(X8) 1- P(X ≤8).
o :
Since ln(X) has a normal distribution with mean μ = 3.2 and standard deviation
σ = 1,
[In(8)
3.21
P(X ≤ 8) = $
=(-1.12) = 0.1314.
1
=
1-P(X ≤8) 1-0.1314 = 0.8686 = 86.86%
8/10
Transcribed Image Text:Example 6.22 From book: Concentrations of pollutants produced by chemical plants historically are known to exhibit behavior that resembles a lognormal distribution. This is important when one considers issues regarding compliance with government regulations. Suppose it is assumed that the concentration of a certain pollutant, in parts per million, has a lognormal distribution with parameters μ = 3.2 and σ = 1. What is the probability that the concentration exceeds 8 parts per million? Let the random variable X be pollutant concentration. Then = P(X8) 1- P(X ≤8). o : Since ln(X) has a normal distribution with mean μ = 3.2 and standard deviation σ = 1, [In(8) 3.21 P(X ≤ 8) = $ =(-1.12) = 0.1314. 1 = 1-P(X ≤8) 1-0.1314 = 0.8686 = 86.86% 8/10
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