APPLIED STAT.IN BUS.+ECONOMICS
APPLIED STAT.IN BUS.+ECONOMICS
6th Edition
ISBN: 9781259957598
Author: DOANE
Publisher: RENT MCG
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Chapter 7.4, Problem 16SE

Find the standard normal area for each of the following, showing your reasoning clearly and indicating which table you used.

  1. a. P(1.22 < Z < 2.15)
  2. b. P(2.00 < Z < 3.00)
  3. c. P(−2.00 < Z < 2.00)
  4. d. P(Z > 0.50)

a.

Expert Solution
Check Mark
To determine

Find the standard normal area for P(1.22<Z<2.15).

Answer to Problem 16SE

The standard normal area for P(1.22<Z<2.15) is 0.0954.

Explanation of Solution

Calculation:

Normal distribution:

A continuous random variable X is said to follow normal distribution if the probability density function of X is,

f(x)=1σ2πe(xμ)22σ2,<x<, with mean μ and standard deviation σ.

Standard normal distribution:

A continuous random variable Z is said to follow standard normal distribution if the probability density function of Z is,

f(z)=12πez22,<z<, with mean 0 and standard deviation 1 for the standardized random variable z=xμσ .

For a standard normal variable it is known that,

P(<Z<0)=0.5=P(0<Z<)

The probability P(1.22<Z<2.15) can be written as,

P(1.22<Z<2.15)=P(Z<2.15)P(Z<1.22)=[[P(<Z<0)+P(0<Z<2.15)][P(<Z<0)+P(0<Z<1.22)]]=P(0<Z<2.15)P(0<Z<1.22)

Calculate the value of P(0<Z<2.15):

From Appendix C-1: Table “STANDARD NORMAL AREAS”,

  • Locate the z value 2.1 in column of z.
  • Locate the probability value corresponding to z-value 2.1 in the column 0.05.

Thus, P(0<Z<2.15)=0.4842.

Calculate the value of P(0<Z<1.22):

From Appendix C-1: Table “STANDARD NORMAL AREAS”,

  • Locate the z value 1.2 in column of z.
  • Locate the probability value corresponding to z-value 1.2 in the column 0.02.

Thus, P(0<Z<1.22)=0.3888.

Hence,

P(1.22<Z<2.15)=P(0<Z<2.15)P(0<Z<1.22)=0.48420.3888=0.0954

Hence, the standard normal area for P(1.22<Z<2.15) is 0.0954.

b.

Expert Solution
Check Mark
To determine

Find the standard normal area for P(2.00<Z<3.00).

Answer to Problem 16SE

The standard normal area for P(2.00<Z<3.00) is 0.02145.

Explanation of Solution

Calculation:

For a standard normal variable it is known that,

P(<Z<0)=0.5=P(0<Z<)

The probability P(2.00<Z<3.00) can be written as,

P(2.00<Z<3.00)=P(Z<3.00)P(Z<2.00)=[[P(<Z<0)+P(0<Z<3.00)][P(<Z<0)+P(0<Z<2.00)]]=P(0<Z<3.00)P(0<Z<2.00)

Calculate the value of P(0<Z<3.00):

From Appendix C-1: Table “STANDARD NORMAL AREAS”,

  • Locate the z value 3.0 in column of z.
  • Locate the probability value corresponding to z-value 3.0 in the column 0.00.

Thus, P(0<Z<3.00)=0.49865.

Calculate the value of P(0<Z<2.00):

From Appendix C-1: Table “STANDARD NORMAL AREAS”,

  • Locate the z value 2.0 in column of z.
  • Locate the probability value corresponding to z-value 2.0 in the column 0.00.

Thus, P(0<Z<2.00)=0.4772.

Hence,

P(2.00<Z<3.00)=P(0<Z<3.00)P(0<Z<2.00)=0.498650.4772=0.02145

Hence, the standard normal area for P(2.00<Z<3.00) is 0.02145.

c.

Expert Solution
Check Mark
To determine

Find the standard normal area for P(2.00<Z<2.00).

Answer to Problem 16SE

The standard normal area for P(2.00<Z<2.00) is 0.9544.

Explanation of Solution

Calculation:

For a standard normal variable it is known that,

P(<Z<0)=0.5=P(0<Z<)

The probability P(2.00<Z<2.00) can be written as,

P(2.00<Z<2.00)=P(Z<2.00)P(Z<2.00)=[[P(<Z<0)+P(0<Z<2.00)]P(<Z<2.00)]=0.5+P(0<Z<2.00)P(<Z<2.00)

From part (b), it is found that P(0<Z<2.00)=0.4772.

Calculate the value of P(Z<2.00):

From Appendix C-2: Table “CUMULATIVE STANDARD NORMAL DISTRIBTION”,

  • Locate the z value –2.0 in column of z.
  • Locate the probability value corresponding to z-value –2.0 in the column 0.00.

Thus, P(Z<2.00)=0.0228.

Hence,

P(2.00<Z<2.00)=0.5+P(0<Z<2.00)P(<Z<2.00)=0.5+0.47720.0228=0.9544

Hence, the standard normal area for P(2.00<Z<2.00) is 0.9544.

d.

Expert Solution
Check Mark
To determine

Find the standard normal area for P(Z>0.50).

Answer to Problem 16SE

The standard normal area for P(Z>0.50) is 0.3085.

Explanation of Solution

Calculation:

For a standard normal variable it is known that,

P(<Z<0)=0.5=P(0<Z<)

The probability P(Z>0.50) can be written as,

P(Z>0.50)=1P(Z<0.50)=1[P(<Z<0)+P(0<Z<0.50)]=10.5P(0<Z<0.50)=0.5P(0<Z<0.50)

Calculate the value of P(0<Z<0.50):

From Appendix C-1: Table “STANDARD NORMAL AREAS”,

  • Locate the z value 0.5 in column of z.
  • Locate the probability value corresponding to z-value 0.5 in the column 0.00.

Thus, P(0<Z<0.50)=0.1915.

Hence,

P(Z>0.50)=0.5P(0<Z<0.50)=0.50.1915=0.3085

Hence, the standard normal area for P(Z>0.50) is 0.3085.

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Chapter 7 Solutions

APPLIED STAT.IN BUS.+ECONOMICS

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