The distribution of monthly income in a neighborhood is normal and if the average monthly income is 1500 TL and the standard deviation is 200 TL, the monthly income; a) What is the ratio of those who are more than 1350 TL? b) What is the ratio of those who are more than 1900 TL?
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!
The distribution of monthly income in a neighborhood is normal and if the average monthly income is 1500 TL and the standard deviation is 200 TL, the monthly income;
a) What is the ratio of those who are more than 1350 TL?
b) What is the ratio of those who are more than 1900 TL?
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