The Normal Distribution
Statistics and Data Analysis Summer 2015
1
The Normal Distribution
Very important distribution in statistical theory
Many phenomena around us and in nature are
modeled by a normal distribution
Quality characteristics of finished

Project Assignment I (Hmw #10)
and Solutions. Review Questions 4, 5, 6, 7, 8, and 10.
Project Assignment II and Solutions. Review Questions 5 through 12. (Be sure you
download the latest version of the Solutions.)
Project Assignment III. Based on Question

STAT-UB.0103, 10-28-15
Prof. Tatum
Homework #6 Solutions Section 1: Poisson Mini-Study
The Poisson Distribution as a Model for Arrivals of Subway Riders
Introduction
We often find ourselves hurrying down the stairs to catch a subway. Sometimes
we find our

STAT-UB.0103
12-16-15
Prof. L. Tatum
Project Assignment Part II Solutions
(correction to rejection region on graph on page 6)
1. Download a second stock of your choice and compute its percentage return for
the same time period as your stock and S&P data.

Final Exam Practice Questions
Project 1
1. Compute a 95% confidence interval for 1. Show your work. (See notes and page 627.) And,
check your work against the Excel output, last row, on the right.
t s / SSxx = 0.8020 1.980 * 8.4589 / 2150.726 = (0.7942,

STAT-UB.0103, 11-16-15
Prof. Tatum
Homework #9 Solutions
Note the
correction to the subscript
s
in the equation for (e): s1
SSxx
1. Answer the following questions using the Net Weight (y) and Count (x) data for the six
bags of Peanut M&Ms shown below.
x

STAT-UB.0103
Prof. Tatum
Homework #6 Solutions, Section 2
NORMAL DISTRIBUTION
Suppose the monthly percentage change for the S&P500 follows a Normal
distribution with =0.79% and =1.3%.
(a) Sketch the distribution by hand. Be sure to show and the 2 points o

STAT-UB.0103, 12-5-15
Hmw10 Solutions
Project Assignment Part I
Prof. Tatum
1. Show the first ten rows of your stock returns and of S&P%, with the dates.
2. Using Excel, regress your stock returns and of S&P%. (Be careful to get y in the right
place.)
3.

STAT-UB.0103, 12-16-15
Prof. Tatum
Final Exam Study Guide
The Final will cover regression, starting at Homework 9 through the end of the semester.
Working on your project is excellent preparation for the Final because the questions will
likely be similar.

STAT-UB.0103
Prof. Tatum
Midterm 2 Study Guide
11-20-15
1. Review the following homework assignments and Solutions, as well as your related
class notes and text sections.
Homework 6: Poisson and Normal distributions
(Chap. 4.5 and 4.6)
Homework 7: Samplin

Sampling, Point Estimation
and Interval Estimation
Statistics and Data Analysis Summer 2015
1
Sampling
Q: What is the average income of all Stern
students?
Finding the exact answer (examining everybody)
is difficult
Solution: examine a sample of studen

HW 2
1) Consider the data on performance of mutual funds, Eg 3 from Handout 3. Past
Loser indicates that the fund lost value over some period in the past (as specified in
Goetzmann and Ibbotsons study.) Current Loser indicates that the fund lost value
in

Multiple Regression
Statistics and Data Analysis Summer 2015
1
Introduction
Often there are several factors that influence a
Y variable
Example 1: salary (y) may depend on
experience (x1), education (x2), and gender (x3)
Understanding the relation betwe

Simple Linear Regression
Statistics and Data Analysis Summer 2015
1
Introduction
Often want to study the relationship between two
variables
SAT score and first-year GPA at a university
Advertising budget and sales
Leg space and satisfaction from flight
D

Random Variables and
Probability Distributions
Statistics and Data Analysis Summer 2015
1
Random Variables
Question: A coin is tossed three times; what is
the probability you will get two heads?
A random variable (RV) is something that takes
on numerica

Hypothesis Testing
Statistics and Data Analysis Summer 2015
1
Hypothesis Testing
Do investment experts pick stocks better than
dart-throwing amateurs? WSJ tested as follows
Four experts pick a stock each
Four stocks are chosen by randomly throwing darts

Normal CDF: use (z) table
z=
x
Normal Random Variable: use (z) table
Ex. Suppose z is a standard normal random variable. What is P(z1.2)? .
8849
Central Limit Theorem: Averages behave like normal random variable
Ex. If x1, x2, , xn are independent sample