Exam 6: Continuous Probability Distributions

A sample of 500 evening students revealed that their annual incomes from employment in industry during the day were normally distributed with a mean income of $30,000 and a standard deviation of $3,000. (i) 250 students earned more than $30,000. (ii. 341 students earned between $27,000 and $33,000. (iii) 239 students earned between $24,000 and $30,000.

i. A continuity correction compensates for estimating a discrete distribution with a continuous distribution. ii. The normal probability distribution is generally deemed a good approximation for the binomial probability distribution when np and n(1 -p)are both greater than five. iii. When a continuity correction factor is used, its value is 1.

A sample of 500 evening students revealed that their annual incomes from employment in industry during the day were normally distributed with a mean income of $30,000 and a standard deviation of $3,000. (i) 250 students earned more than $30,000. (ii. 341 students earned between $27,000 and $33,000. (iii) 290 students earned between $24,000 and $30,000.