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Lesson 4.4 Probability and Normal Distribution

This document discusses properties of the normal distribution, calculating areas and probabilities of the normal distribution, linear regression, and an example problem. It provides the following key points: - The normal distribution is bell-shaped and symmetric about the mean. 68.3% of the data lies within 1 standard deviation of the mean, 95% within 2 standard deviations, and 99.7% within 3 standard deviations. - Linear regression finds the relationship between a dependent variable Y and independent variables to model and predict future values. It determines the slope a and y-intercept b to obtain the linear regression equation y = ax + b. - An example calculates the correlation and linear regression equation between hours of sunshine and ice cre

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Jayson Delos Santos
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448 views13 pages

Lesson 4.4 Probability and Normal Distribution

This document discusses properties of the normal distribution, calculating areas and probabilities of the normal distribution, linear regression, and an example problem. It provides the following key points: - The normal distribution is bell-shaped and symmetric about the mean. 68.3% of the data lies within 1 standard deviation of the mean, 95% within 2 standard deviations, and 99.7% within 3 standard deviations. - Linear regression finds the relationship between a dependent variable Y and independent variables to model and predict future values. It determines the slope a and y-intercept b to obtain the linear regression equation y = ax + b. - An example calculates the correlation and linear regression equation between hours of sunshine and ice cre

Uploaded by

Jayson Delos Santos
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
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LESSON 4.

4
PROBABILITY AND NORMAL
DISTRIBUTION
Properties of a Normal Distribution

• The distribution is a bell shaped.


• The mean, median and mode are equal and are located at the
center of the distribution.
• The normal distribution is unimodal.
• The normal distribution is symmetric about the mean.
• The normal distribution is asymptotic.
• The total area under the normal distribution curve is 1 or 100%
• The area under the part of a normal curve that lies within 1
standard deviation of the mean, about 68.3%; within 2
standard deviation, about 95%; and with 3 standard deviation,
about 99.7%. See the figure below.
Properties of a Normal Distribution
Calculating Normal Distribution, Areas, Percentage and
Probabilities

 
Standard Normal Value

Where,
Calculating Normal Distribution, Areas, Percentage and
Probabilities
Example 1
1. Find the area of the normal distribution between z= -1.44 and z= 0
Answer. 0.4251
2. Find the area of the normal distribution to the right of z= 0.82
Answer. 0.2048
3. Find the area of the normal distribution between z= -1.42and z= 1.64
Answer. 0.8717
4. A psychologist find that the intelligence quotients of a group of patience are
normally distributed, with a mean of 102 and standard deviation of 16. Find
the probability of getting the patient with IQ.
a. Above 114
Answwer. 22.53%
b. Between 90 and 118
Answer. 61.47%
Correlation
Correlation
LINEAR REGRESSION
Regression is a statistical method used in finance,
investing, and other disciplines that attempts to
determine the strength and character of the
relationship between one dependent variable (usually
denoted by Y) and a series of other variables (known as
independent variables).
Regression helps investment and financial managers
to value assets and understand the relationships
between variables, such as commodity prices and the
stocks of businesses dealing in those commodities.
The Least-Squares
LINEAR REGRESSION
•Step
  1. y = ax + b, where
a=
b=y–ax
Step 2. Substitute the value of a and b to the
equation y = ax + b.
Step 3. Graph
Example 2
Sam found how many hours of sunshine vs how many ice creams were sold at the shop from
Monday to Friday:
Solve the following:
1. Correlation between x and y
2. Linear regression equation
3. Graph
4. Find y when x is 6

"x" "y"
Hours of Sunshine Ice Creams Sold

2 4

3 5

5 7

7 10

9 15
Answer
1.Correlation between x and y
Answer. 0.98, very high
2. Linear regression equation
y = 1.518x + 0.296
Answer.
3. Find y when x is 6
Answer. 9.42
2. Graph
Answer.
4. Graph

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