Suppose the money spent is uniformly distributed between these amounts. a) What is the mean amount spent on insurance? b) What is the standard deviation of the amount spent? c) If we select a family at random, what is the probability they spend less than $2,000 per year on insurance? d) What is the probability a family spends more than $3,00 per year? Try This ....
Normal Probability Distribution The normal probability distribution is a continuous distribution with the following characteristics ▪ It is bell-shaped and has a single peak at the center of the distribution ▪ The distribution is symmetric ▪ It is asymptotic , meaning the curve approaches but never touches the X-axis ▪ It is completely described by its mean and standard deviation
The Normal Curve
Family of Normal Probability Distributions Equal 𝝁, Different 𝝈 Different 𝝁 and 𝝈 Different 𝝁 and Equal 𝝈 Created when either the mean or the standard deviation changes