Applied Statistics in Business and Economics
Applied Statistics in Business and Economics
5th Edition
ISBN: 9781259329050
Author: DOANE
Publisher: MCG
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Chapter 7.4, Problem 17SE

Find the standard normal area for each of the following. Sketch the normal curve and shade in the area represented below.

  1. a. P(Z < −1.28)
  2. b. P(Z > 1.28)
  3. c. P(−1.96 < Z < 1.96)
  4. d. P(−1.65 < Z < 1.65)

a.

Expert Solution
Check Mark
To determine

Find the standard normal area for P(Z<1.28).

Answer to Problem 17SE

The standard normal area for P(Z<1.28) is 0.1003.

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(Z<1.28) can be written as,

P(Z<1.28)=P(<Z<1.28).

Calculate the value of P(Z<1.28):

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

  • Locate the z value –1.2 in column of z.
  • Locate the probability value corresponding to z-value –1.2 in the column 0.08.

Thus, P(Z<1.28)=0.1003.

Hence, the standard normal area for P(Z<1.28) is 0.1003.

b.

Expert Solution
Check Mark
To determine

Find the standard normal area for P(Z>1.28).

Answer to Problem 17SE

The standard normal area for P(Z>1.28) is 0.1003.

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>1.28) can be written as,

P(Z>1.28)=1P(Z<1.28)=1[P(<Z<0)+P(0<Z<1.28)]=10.5P(0<Z<1.28)=0.5P(0<Z<1.28)

Calculate the value of P(0<Z<1.28):

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 0.08.

Thus, P(0<Z<1.28)=0.3997.

Hence,

P(Z>1.28)=0.5P(0<Z<1.28)=0.50.3997=0.1003

Hence, the standard normal area for P(Z>1.28) is 0.1003.

c.

Expert Solution
Check Mark
To determine

Find the standard normal area for P(1.96<Z<1.96).

Answer to Problem 17SE

The standard normal area for P(1.96<Z<1.96) is 0.95.

Explanation of Solution

Calculation:

For a standard normal variable it is known that,

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

The probability P(1.96<Z<1.96) can be written as,

P(1.96<Z<1.96)=P(Z<1.96)P(Z<1.96)=[[P(<Z<0)+P(0<Z<1.96)]P(<Z<1.96)]=0.5+P(0<Z<1.96)P(<Z<1.96)

Calculate the value of P(0<Z<1.96):

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

  • Locate the z value 1.9 in column of z.
  • Locate the probability value corresponding to z-value 1.9 in the column 0.06.

Thus, P(0<Z<1.96)=0.4750.

Calculate the value of P(Z<1.96):

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

  • Locate the z value –1.9 in column of z.
  • Locate the probability value corresponding to z-value –1.9 in the column 0.06.

Thus, P(Z<1.96)=0.0250.

Hence,

P(1.96<Z<1.96)=0.5+P(0<Z<1.96)P(<Z<1.96)=0.5+0.47500.0250=0.95

Hence, the standard normal area for P(1.96<Z<1.96) is 0.95.

c.

Expert Solution
Check Mark
To determine

Find the standard normal area for P(1.65<Z<1.65).

Answer to Problem 17SE

The standard normal area for P(1.65<Z<1.65) is 0.901.

Explanation of Solution

Calculation:

For a standard normal variable it is known that,

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

The probability P(1.65<Z<1.65) can be written as,

P(1.65<Z<1.65)=P(Z<1.65)P(Z<1.65)=[[P(<Z<0)+P(0<Z<1.65)]P(<Z<1.65)]=0.5+P(0<Z<1.65)P(<Z<1.65)

Calculate the value of P(0<Z<1.65):

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

  • Locate the z value 1.6 in column of z.
  • Locate the probability value corresponding to z-value 1.6 in the column 0.05.

Thus, P(0<Z<1.65)=0.4505.

Calculate the value of P(Z<1.65):

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

  • Locate the z value –1.6 in column of z.
  • Locate the probability value corresponding to z-value –1.6 in the column 0.05.

Thus, P(Z<1.65)=0.0495.

Hence,

P(1.65<Z<1.65)=0.5+P(0<Z<1.65)P(<Z<1.65)=0.5+0.45050.0495=0.901

Hence, the standard normal area for P(1.65<Z<1.65) is 0.901.

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Chapter 7 Solutions

Applied Statistics in Business and Economics

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