Exam 6: The Normal Distribution and Other Continuous Distributions

You were told that the amount of time lapsed 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 lapsed between two consecutive trades to fall between 16 to 17 seconds was 13%. The probability that the time lapsed between two consecutive trades would fall below 13 seconds was 7%. What is the probability that the time lapsed between two consecutive trades will be longer than 17 seconds?

SCENARIO 6-6 A recent survey revealed that American's Christmas spending averaged $830. Use this as the population mean American's Christmas spending. Suppose American's Christmas spending is normally distributed with a standard deviation of $220. -Referring to Scenario 6-6, the middle 50% of Americans will spend how much on Christmas?

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, for a given month, what is the probability that John's commission from the jewelry store is more than $9,500?

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?

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 above 10.95 ounces.

SCENARIO 6-3 Suppose the time interval between two consecutive defective light bulbs from a production line has a uniform distribution over an interval from 0 to 90 minutes. -Referring to Scenario 6-3, what is the variance of the time interval?

In its standardized form, 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 __________.

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, for a given month, what is the probability that John's income as a waiter is between $700 and $1600?

You were told that the mean score on a statistics exam is 75 with the scores normally distributed. In addition, you know the probability of a score between 55 and 60 is 4.41% and that the probability of a score greater than 90 is 6.68%. The middle 95.46% of the students will score between which two scores?

The value of the cumulative standardized normal distribution at Z is 0.8770. The value of Z is

SCENARIO 6-4 A company producing orange juice buys all its oranges from a large orange orchard. The amount of juice that can be squeezed from each of these oranges is approximately normally distributed with a mean of 4.7 ounces and some unknown standard deviation. The company's production manager knows that the probability is 30.85% that a randomly selected orange will contain less than 4.5 ounces of juice. Also the probability is 10.56% that a randomly selected orange will contain more than 5.2 ounces of juice. Answer the following questions without the help of a calculator, statistical software or statistical table. -Referring to Scenario 6-4, what is the probability that a randomly selected orange will contain between 4.2 and 4.9 ounces of juices?

SCENARIO 6-6 A recent survey revealed that American's Christmas spending averaged $830. Use this as the population mean American's Christmas spending. Suppose American's Christmas spending is normally distributed with a standard deviation of $220. -Referring to Scenario 6-6, the middle 50% of Americans will spend how much on Christmas?

SCENARIO 6-4 A company producing orange juice buys all its oranges from a large orange orchard. The amount of juice that can be squeezed from each of these oranges is approximately normally distributed with a mean of 4.7 ounces and some unknown standard deviation. The company's production manager knows that the probability is 30.85% that a randomly selected orange will contain less than 4.5 ounces of juice. Also the probability is 10.56% that a randomly selected orange will contain more than 5.2 ounces of juice. Answer the following questions without the help of a calculator, statistical software or statistical table. -Referring to Scenario 6-4, what is the probability that a randomly selected orange will contain no more than 4.9 ounces of juices?

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, John's income as a waiter will be between what two values symmetrically distributed around the population mean 90% of the time?

A worker earns $15 per hour at a plant in China and is told that only 2.5% of all workers make a higher wage. If the wage is assumed to be normally distributed and the standard deviation of wage rates is $5 per hour, the mean wage for the plant is $7.50 per hour.

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, John's commission from the jewelry store will be between what two values symmetrically distributed around the population mean 90% of the time?

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 is __________ that a product is assembled in less than 12 minutes.

A normal probability plot may be used to assess the assumption of normality for a particular set of data.

SCENARIO 6-6 A recent survey revealed that American's Christmas spending averaged $830. Use this as the population mean American's Christmas spending. Suppose American's Christmas spending is normally distributed with a standard deviation of $220. -Referring to Scenario 6-6, what percentage of Americans will spend less than $1,100 or more than $600 on Christmas?