Frustrated by your loss, you shrug it off and walk over to the Fountains of Bellagio to ponder your choices in life. While gazing into the massive jets of water streaming high into the air, you recall a piece of information you read on the flight into town – that the average person gambling in Las Vegas loses roughly $500 in a given year. Assuming this is correct, and that the average person's losses are roughly Normal with a standard deviation of $300 (and that a person only visits Vegas once in a given year): a) What is the probability that you will leave Vegas having lost no more than that $100?

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Confidence Intervals

When we calculate intervals in probability and statistics, it can be simply termed as finding out a confidence interval. The confidence interval is usually calculated from the data set which is observed. The value of the parameter that needs to be calculated is present here only.