Exam 6: The Normal Distribution

Suppose Z has a standard normal distribution with a mean of 0 and standard deviation of 1.So,85% of the possible Z values are smaller than .

You were told that the amount of time elapsed between consecutive trades on a foreign stock exchange market followed a normal distribution with a mean of 15 seconds.You were also told that the probability that the time elapsed between two consecutive trades to fall between 16 to 17 seconds was 13%.The probability that the time elapsed between two consecutive trades would fall below 13 seconds was 7%.What is the probability that the time elapsed between two consecutive trades will be between 13 and 16 seconds?

The amount of time necessary for assembly line workers to complete a product is a normal variable with a mean of 15 minutes and a standard deviation of 2 minutes.So, 15% of the products require more than minutes for assembly.

The probability that a standard normal variable, Z, is less than 5.0 is approximately 0.

The "middle spread," that is the middle 50% of the normal distribution, is equal to plus or minus one standard deviation.

You were told that the amount of time elapsed between consecutive trades on a foreign stock exchange market followed a normal distribution with a mean of 15 seconds.You were also told that the probability that the time elapsed between two consecutive trades to fall between 16 to 17 seconds was 13%.The probability that the time elapsed between two consecutive trades would fall below 13 seconds was 7%.The probability is 80% that the time elapsed will be longer than how many seconds?

You were told that the amount of time elapsed between consecutive trades on a foreign stock exchange market followed a normal distribution with a mean of 15 seconds.You were also told that the probability that the time elapsed between two consecutive trades to fall between 16 to 17 seconds was 13%.The probability that the time elapsed between two consecutive trades would fall below 13 seconds was 7%.What is the probability that the time elapsed between two consecutive trades will be between 14 and 17 seconds?

SCENARIO 6-5 Ball bearings are manufactured with a mean diameter of 6 millimeters (mm).Because of the inherent manufacturing process variability, the lots of bearings are approximately normally distributed with a standard deviation of 0.03 mm. -Using Scenario 6-5 and the result of the previous question, if 40,000 ball bearings were to be manufactured, how many would the manager have to discard?

For some value of Z, the value of the cumulative standardized normal distribution is 0.8340.The value of Z is

The true length of boards cut at a mill with a listed length of 10 feet is normally distributed with a mean of 123 inches and a standard deviation of 1 inch.What proportion of the boards will be less than 124 inches?

A food processor packages orange juice in small jars.The weights of the filled jars are approximately normally distributed with a mean of 10.5 ounces and a standard deviation of 0.3 ounce.Find the proportion of all jars packaged by this process that have weights that fall above10.95 ounces.

SCENARIO 6-2 John has two jobs.For daytime work at a jewelry store he is paid $15,000 per month, plus a commission.His monthly commission is normally distributed with mean $10,000 and standard deviation $2000.At night he works occasionally as a waiter, for which his monthly income is normally distributed with mean $1,000 and standard deviation $300.John's income levels from these two sources are independent of each other. -Referring to Scenario 6-2, the probability is 0.35 that John's income as a waiter is no less than how much in a given month?

SCENARIO 6-4 According to Investment Digest, the arithmetic mean of the annual return for common stocks over an 85-year period was 9.5% but the value of the variance was not mentioned.Also 25% of the annual returns were below 8% while 65% of the annual returns were between 8% and 11.5%.The article claimed that the distribution of annual return for common stocks was bell-shaped and approximately symmetric.Assume that this distribution is normal with the mean given above.Answer the following questions without the help of a calculator, statistical software or statistical table. -Referring to Scenario 6-4, 10% of the annual returns will be less than what amount?

SCENARIO 6-1 The number of column inches of classified advertisements appearing on Mondays in a certain daily newspaper is normally distributed with population mean of 320 and population standard deviation of 20 inches. -Referring to Scenario 6-1, for a randomly chosen Monday, what is the probability there will be less than 340 column inches of classified advertisement?

The amount of time necessary for assembly line workers to complete a product is a normal variable with a mean of 15 minutes and a standard deviation of 2 minutes.The probability isthat a product is assembled in more than 11 minutes.

A food processor packages orange juice in small jars.The weights of the filled jars are approximately normally distributed with a mean of 10.5 ounces and a standard deviation of 0.3 ounce.Find the proportion of all jars packaged by this process that have weights that fall below10.875 ounces.

SCENARIO 6-2 John has two jobs.For daytime work at a jewelry store he is paid $15,000 per month, plus a commission.His monthly commission is normally distributed with mean $10,000 and standard deviation $2000.At night he works occasionally as a waiter, for which his monthly income is normally distributed with mean $1,000 and standard deviation $300.John's income levels from these two sources are independent of each other. -Referring to Scenario 6-2, the probability is 0.45 that John's income as a waiter is more than how much in a given month?

A company that sells annuities must base the annual payout on the probability distribution of the length of life of the participants in the plan.Suppose the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 3.5 years.What proportion of the plan recipients die before they reach the standard retirement age of 65?

Which of the following about the normal distribution is not true?

The amount of tea leaves in a can from a production line is normally distributed with $\mu = 110$ grams and $\sigma = 25$ grams.Approximately 83% of the can will have at least how many grams oftea leaves?