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Normal Distribution1

Here are the hypotheses for the two examples: 1) H0: The mean refund for last minute filers is ≥ Rs. 1200 H1: The mean refund for last minute filers is < Rs. 1200 2) H0: The true mean weight of packets is 5 kg H1: The true mean weight of packets is > 5 kg To test the first hypothesis, we would use a one-sample t-test since the population standard deviation is unknown. To test the second hypothesis, we can use a one-sample z-test since the population standard deviation is known to be 0.21 kg. For both tests, we will use a significance level of α = 0

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Arun Rai
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284 views

Normal Distribution1

Here are the hypotheses for the two examples: 1) H0: The mean refund for last minute filers is ≥ Rs. 1200 H1: The mean refund for last minute filers is < Rs. 1200 2) H0: The true mean weight of packets is 5 kg H1: The true mean weight of packets is > 5 kg To test the first hypothesis, we would use a one-sample t-test since the population standard deviation is unknown. To test the second hypothesis, we can use a one-sample z-test since the population standard deviation is known to be 0.21 kg. For both tests, we will use a significance level of α = 0

Uploaded by

Arun Rai
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Normal Distribution

Properties of Normal Distribution

The curve has a single peak, thus it is unimodal.


The mean of a normally distributed population lies at the
centre of its normal curve.
Because of the symmetry of the normal distribution, the
median and mode of the distribution are also at the centre; thus,
for a normal curve, the mean, median and mode are the same
value.
The two tails of the normal distribution extend indefinitely and
never touches the horizontal axis.

Area Under the Normal Curve:


No matter what the values of Mean and standard
Deviation for a normal probability distribution, the
total are under the normal curve is 1.00
Approximately 68 percent of all the values
normally distributed population lies within 1
from the mean
Approximately 95.5 percent of all the values
normally distributed population lies within 3
from the mean
Approximately 99.7 percent of all the values
normally distributed population lies within 3
from the mean

in a
S.D.
in a
S.D.
in a
S.D.

Question 1. 1000 light bulbs with mean of 120 days are


installed in a new factory and their length of life is
normally distributed with standard deviation of 20 days.
(a)How many bulbs will expire in less than 90 days?
(b)If it is decided to replace all the bulbs together, what
interval should be allowed between replacements if not
more than 10% should expire before replacement?

Case Study
A training programme designed to upgrade the
supervisory
skills
of
production-line
supervisors. Because the program is selfadministered, supervisors require different
numbers of hours to complete the program.
A study of past participants indicate that the
mean length of time spent on the program is
500 hours and that this normally distributed
random variable has a standard deviation of
100 hours.

Question.1: What is the probability that a participant


selected at random will require more than 500 hours to
complete the program?
Question.2: What is the probability that a candidate
selected at random will take between 500 and 650 hours
to complete the training program?
Question.3: What is the probability that a candidate
selected at random will take more than 700 hours to
complete the program?
Question.4 Suppose the training program director wants
to know the probability that a participant chosen at
random would require between 550 and 650 hours to
complete the required work
Question.5: What is the probability that a candidate
selected at random will require fewer than 580 hours to
complete the program?
Question.6: What is the probability that a candidate
chosen at random will take between 420 and 570 hours to
complete the program?

Question: A machine that fills bottles is known to have a mean filling


amount of 125 grams and a standards deviation of 20 grams. A quality
control manager took a random sample of filled bottles and found the
sample mean to be 130. The Quality control manager assumed the sample
must not be representative. Is this conclusion correct

Question: No. The mean of a sample usually does not exactly equal the
population mean because of sampling error.

The Central Limit Theorem


The relationship between the shape of the population distribution and the
shape of the sampling distribution of mean is called the central limit
theorem.
The central limit theorem is the most important in all of statistical
inference.
It assures us that the sampling distribution of the mean approaches normal
as the sample size increases.
The significance of the central limit theorem is that it permits us to use
sample statistics to make inferences about population parameters without
knowing anything about the shape of the frequency distribution of that
population other than what we can from the sample.

Hypothesis Testing
Set up Null and Alternative Hypothesis
Select the level of
Significance
Select the Test Statistics

Establish the Decision


Rule
Perform Computations

Draw Conclusions

Examples of Developing
Hypothesis
A study claims that mean income of the senior executives in the
manufacturing sector in an industrial state is Rs. 625,000 per annum. To
test this claim, it is decided to take a sample of 200 executives and obtain
their mean income. Set up the appropriate hypothesis
A researcher contends that the mean daily sleep of young babies is 15
hours. A sample of 40 babies is taken randomly and their average sleep is
found to be 13 hours and 48 minutes, with a standard deviation of 80
minutes. Set up the null and the alternative hypothesis to test his claim
A company administered an intelligence test to all its employees for a
long period of time. For all the 80,000 employees, the mean score was
found to be 75 and the standard deviation 12. A researcher wishes to study
the theory that the top line supervisors of the company are intelligent than
average. For that, a sample of 50 supervisors is chosen randomly and their
mean score is found. To test the theory, what should be the null and
alternative ypothesis?

Hypothesis Testing of Means when the population


Standard Deviation is Known

Hypothesis Testing of Means when the population


Standard Deviation is unknown: Large Samples

Hypothesis Testing of Means when the population


Standard Deviation is Known
A manufacture supplies the rear axles for U.S. Postal
Service mail trucks. These axles must be able to withstand
80,000 pounds per square inch stress tests, but an
excessively
strong
axle
raises
production
costs
significantly. Long experience indicates that the standard
deviation of the strength of the axles is 4000 pounds per
square inch. The manufacture selects a sample of 100
axles from production and tests them, and finds that mean
stress capacity of the sample is 79,600 pounds per square
inch
If the axle manufacturer uses a significance level of
0.05 in testing, will the axles meet his stress
requirements?

Random
Variable

A variable that takes on different values


as a result of the outcomes of a random
experiment

Probability
Distribution

A list of outcomes of an experiment with


the probabilities we would expect to see
associated with these outcomes

Continuous
Random
Variable

A random variable that is allowed to take


any value within a given range

Discrete
Random
Variable
Continuous
Probability
Distribution

A random variable that is allowed to take


only a limited number of values, which
can be listed
A probability distribution in which the
variable is allowed to take any value
within a given range.

Expected Value

Expected value
of a random
variable

Normal
Distribution

Standard
Normal
Probability
Distribution

A weighted average of the outcome of an


experiment

The sum of the products of each value of


the random variable with that values
probability of occurrence.
A distribution of a continuous random
variable with a single-peaked, bell-shaped
curve. The mean lies at the center of the
distribution, and the curve is symmetrical
around the vertical line. The two tails
extend indefinitely, never touching the
horizontal line

A normal distribution with mean zero and


standard deviation 1.

Individual filing of income tax returns prior to 30 june had an


average refund of Rs 1200. Consider the population of last minute
filers who file their returns during last week of June. For a random
sample of 400 individuals who filed a returns between 25 and 30
June, the sample mean refund was Rs. 1054 and the sample s.d
was Rs. 1600. Using 5 percent level of significance, test the belief
that the individuals who wait until the last week of June o file
their returns to get a higher refund than early the fliers
A packaging device is set to fill detergent power packets with a
mean of weight of 5 kg, with a sd of 0.21 kg. the weight of packets
can be assumed to be normally distributed. The weight of packets
is known to drift upwards over a period of time due to machine
fault, which is not tolerable. A random sample of 100 packet is
taken and weighted. This sample has mean weight of 5.03 kg. Can
we conclude that the mean weight produced by the machine has
increased? Use a 5 percent level of significance?

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