x is a gaussian random variable with a PDF as described above, where μ is the mean, σ is the standard deviation , and Fx(X) refers to the cumulative distribution function CDF. It is known that Fx(-0.7) = 0.500 and Fx(1.3)=0.841, what value of Xo do we find the probability Fx(Xo) = P(X

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x is a gaussian random variable with a PDF as described above, where μ is the mean, σ is the standard deviation , and Fx(X) refers to the cumulative distribution function CDF. It is known that Fx(-0.7) = 0.500 and Fx(1.3)=0.841, what value of Xo do we find the probability Fx(Xo) = P(X<Xo) = 0.023 ?

### Understanding the Normal Distribution

The graph illustrates the Normal Distribution, a fundamental concept in statistics representing how values are distributed around the mean (average), denoted here by \( X \).

#### Key Components:

- **Probability vs. Values**: The vertical axis represents probability, while the horizontal axis represents values.

- **Bell Curve Shape**: The curve is symmetric, centered around the mean, and describes how data points are spread. Most of the data is close to the mean.

- **Standard Deviations (\( \sigma \))**:
  - \( -4\sigma \) to \( +4\sigma \) along the horizontal axis represent standard deviations from the mean. 
  - The percentages below the axis indicate cumulative probabilities at each standard deviation.
  - Cumulative percentages show:
    - \( -1\sigma \) to \( +1\sigma \): 68.2% of values
    - \( -2\sigma \) to \( +2\sigma \): 95.4% of values
    - \( -3\sigma \) to \( +3\sigma \): 99.7% of values

- **Z Scores and T Scores**:
  - Displayed below the standard deviations, these are used in statistical analysis to understand data distribution.

#### Probability of Cases:

- Represented by shaded regions under the curve, showing probabilities in terms of portions of the curve.
  - \( \approx 0.3413 \): Percentage of data within ±1 standard deviation
  - \( \approx 0.1359 \): Between 1-2 standard deviations
  - \( \approx 0.0214 \): Between 2-3 standard deviations
  - \( \approx 0.0013 \): Beyond 3 standard deviations
  
### Practical Implications:

Understanding the normal distribution assists in various fields such as psychology, finance, and natural sciences for hypothesis testing, decision making, and predicting patterns. It serves as the foundation for many statistical tests and is essential for data analysis.
Transcribed Image Text:### Understanding the Normal Distribution The graph illustrates the Normal Distribution, a fundamental concept in statistics representing how values are distributed around the mean (average), denoted here by \( X \). #### Key Components: - **Probability vs. Values**: The vertical axis represents probability, while the horizontal axis represents values. - **Bell Curve Shape**: The curve is symmetric, centered around the mean, and describes how data points are spread. Most of the data is close to the mean. - **Standard Deviations (\( \sigma \))**: - \( -4\sigma \) to \( +4\sigma \) along the horizontal axis represent standard deviations from the mean. - The percentages below the axis indicate cumulative probabilities at each standard deviation. - Cumulative percentages show: - \( -1\sigma \) to \( +1\sigma \): 68.2% of values - \( -2\sigma \) to \( +2\sigma \): 95.4% of values - \( -3\sigma \) to \( +3\sigma \): 99.7% of values - **Z Scores and T Scores**: - Displayed below the standard deviations, these are used in statistical analysis to understand data distribution. #### Probability of Cases: - Represented by shaded regions under the curve, showing probabilities in terms of portions of the curve. - \( \approx 0.3413 \): Percentage of data within ±1 standard deviation - \( \approx 0.1359 \): Between 1-2 standard deviations - \( \approx 0.0214 \): Between 2-3 standard deviations - \( \approx 0.0013 \): Beyond 3 standard deviations ### Practical Implications: Understanding the normal distribution assists in various fields such as psychology, finance, and natural sciences for hypothesis testing, decision making, and predicting patterns. It serves as the foundation for many statistical tests and is essential for data analysis.
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