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Unformatted text preview: Probability Properties Normal Distribution Standard Normal Calculations of probabilities from table - 2 - Inverse Problems Value at Risk (VaR) Sampling Distributions (Chapter 14) Sample Mean x If x is normal with mean μ and std dev σ, then the sample mean x is normal with mean μ and std dev σ/ n , where n is the # of observations in the sample. Even if x is non-normal, the sample mean x is approximately normal with mean μ and std dev σ/ n when n is large. Calculating probabilities Sample Proportion p p is approximately normal with mean p (true proportion) and std dev n p p ) 1 ( , where n is the # of observations in the sample. Calculating probabilities...
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This note was uploaded on 11/30/2010 for the course BUAD 310 at USC.