The Normal Distribution and Other Continuous Distributions (PPT)

Basic Business Statistics (8th Edition)
Chapter 6 - The Normal Distribution and Other Continuous Distributions

Chapter Topics

• The normal distribution
• The standardized normal distribution
• Evaluating the normality assumption
• The exponential distribution

Continuous Probability Distributions

• Continuous random variable
• Continuous probability distribution
• Most important continuous probability distribution

The Normal Distribution

• “Bell shaped”
• Symmetrical
• Mean, median and mode are equal
• Interquartile rangeequals 1.33 n Random variablehas infinite range

Assessing Normality

• Observe the distribution of the data set
• Evaluate normal probability plot

Chapter Summary

• Discussed the normal distribution
• Described the standard normal distribution
• Evaluated the normality assumption
• Defined the exponential distribution 

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