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mba 522 Q-A on Normal calculations

# mba 522 Q-A on Normal calculations - Question from Student...

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Question from Student I get confused with the normal distribution. How can I tell if I should add or subtract to get the answer? Answer from Dr. J. It depends entirely on what the question is that is being asked. The best thing that I can suggest is to graph each and every problem out. This does not take long. Just a simple graph scratched out on paper to help you visually see things. Follow these steps, and see the various examples I have given below. 1. Sketch a normal curve. 2. Mark the X values and corresponding Z values under the horizontal axis. The authors do the same in figure 6.6. Notice how they have X values reported on the X axis (the 36500 and the 40000). Also, note how they have the corresponding Z values reported under the X values: I am talking about the 0 and 0.7). 3. Partition the area under the curve using vertical lines that go all the way up to the curve (like the authors do in figures 6.6 and 6.7). 4. Shade the area that corresponds to the answer for the problem. The authors have done that in figures 6.6, 6.7, 6.8 and 6.9.

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