14. Statistical Techniques in Business & Economics (7)

7 ­ 1. THE Normal. PROBABILITY. © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 7 ­ 2. When you have completed this chapter, you will be able to: 1. Explain how probabilities are assigned . to a continuous random variable. 2. Explain the characteristics of a normal . probability distribution. 3. Define and calculate z value corresponding to . any observation on a normal © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 7 ­ 3. 4. Determine the probability a random observation is . in a given interval on a normal distribution . using the standard . normal distribution. . 5. Use the normal probability distribution to approximate . the binomial probability distributionCopyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 7 ­ 4. Continuous Random Variable. Continuous Random Variable. the set of . all the values . in . any interval . is . . .we will now study the class of . uncountable or infinite!. .we will now study the class of . continuous probability distributions continuous probability distributions Recall . Recall .Copyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Variables 7 ­ 5. Quantitative can be classified as either . Discrete or. Numerical Continuous. Observations. Characteristics. can assume any. can assume any value. value . . within a specified .