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CHP 7
Continuous
presence of gaps in the possible values for a discrete random variable.
Any value over a certain rank is possible. Are NOT concerned with specific values of X, but
rather the possibilities over a range of values such as
greater than 65
,
less than 20
, etc.
Curves have specific shapes of:
Uniform
histogram of sample data is nearly flat
Normal
– symmetric with decreasing tails at each end, bellshaped, “tails die out quickly”
Exponential
– steadily decreases from left to right
Symbols:
Mean (
sample
)=
Stan deviation (
sample
) =
s
Mean (
population
)= μ
Stan deviation (
population
)=
Any continuous random variable, total area under curve equals =1. In Uniform and normal
curves mean and median should be nearly equal. In exponential, median should be less
than the mean.
A probability is represented by an area under the corresponding normal curve.
Probability of Z = any value under the standard normal curve is always 0.
P(Z < 1.62) = .5
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 Spring '10
 Impson
 Valuation

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