The last question stated "The distribution is skewed to the right due to several high volume days (football game days)". Based on this statement do you have any reservations about the reliability of the probability you calculated in the last question ? a. No - The distribution of revenue for all days, i.e. the population distribution, is skewed, not symmetric and therefore the population does not follow the normal distribution. However the Central Limit Theorem applies in this case, and the sampling distribution of the mean follows a normal distribution even if the population does not have a normal distribution. b. Yes - The distribution of revenue for all days, i.e. the population distribution is skewed, not symmetric and therefore the population does not follow the normal distribution. Therefore the assumption required to carry out the analysis, that the population be normally distributed, is not valid. c. Yes - The distribution of revenue for all days, i.e. the population distribution is skewed, not symmetric and therefore the population does not follow the normal distribution. Therefore the sampling distribution of the mean does not follow the normal distribution
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!
a. |
No - The distribution of revenue for all days, i.e. the population distribution, is skewed, not symmetric and therefore the population does not follow the normal distribution. However the Central Limit Theorem applies in this case, and the sampling distribution of the |
|
b. |
Yes - The distribution of revenue for all days, i.e. the population distribution is skewed, not symmetric and therefore the population does not follow the normal distribution. Therefore the assumption required to carry out the analysis, that the population be |
|
c. |
Yes - The distribution of revenue for all days, i.e. the population distribution is skewed, not symmetric and therefore the population does not follow the normal distribution. Therefore the sampling distribution of the mean does not follow the normal distribution
|
Step by step
Solved in 2 steps