Lecture12 - lecture 12 Continuous Random Variable III 1/27...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: lecture 12, Continuous Random Variable III 1/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Outline 1 Finding z-Points 2 Normal Approximation 3 More Examples 4 Midterm Related lecture 12, Continuous Random Variable III 2/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Finding z-Points Finding z-Points on a Standard Normal Curve For any 0 < α < 1, z α is the value such that P ( Z ≥ z α ) = α. lecture 12, Continuous Random Variable III 3/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Finding z-Points Finding z-Points, ctd • Given an α , how to find z α ? For example, what’s z . 025 ? lecture 12, Continuous Random Variable III 4/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Finding z-Points Finding z-Points, ctd Read from the standard normal table that z . 025 ≈ 1 . 96. lecture 12, Continuous Random Variable III 5/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Finding z-Points Finding z-Points, ctd • Similarly, z . 05 : • Read from the standard normal table that z . 05 ≈ 1 . 65 • z . 01 ≈ 2 . 33 lecture 12, Continuous Random Variable III 6/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Finding z-Points Finding z-Points, ctd • What’s z . 975 ? lecture 12, Continuous Random Variable III 7/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Finding z-Points Finding z-Points, ctd • What’s z . 975 ? • Hence z . 975 =- z . 025 ≈ - 1 . 96 lecture 12, Continuous Random Variable III 8/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Finding z-Points Finding z-Points, ctd When α > . 5, z α =- z 1- α • z . 95 =- z . 05 ≈ - 1 . 65, z . 99 =- z . 01 ≈ - 2 . 33 lecture 12, Continuous Random Variable III 9/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Finding z-Points Example: Inventory Management • A discount store sells packs of 50 DVD’s • Let X be the random variable of weekly demand • Suppose that X is normally distributed with μ = 100 packs, and σ = 10 packs • Q: How many packs should be stocked so that there is only a 5% chance that the store will run short during a week? lecture 12, Continuous Random Variable III 10/27 Finding z-Points Normal Ap- proximation More Examples Midterm Related lecture 12, Continuous Random Variable III Finding z-Points Example: Inventory Management, ctd • Want to find x such that P ( X ≥ x ) = 5 % • Z = ( X- 100 ) / 10 is a standard normal random variable, P ( X ≥...
View Full Document

This note was uploaded on 12/28/2010 for the course BUSINESS A ISOM 111 taught by Professor Yingyingli during the Fall '10 term at HKUST.

Page1 / 27

Lecture12 - lecture 12 Continuous Random Variable III 1/27...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online