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Probability
Distributions
Chapter 7
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Learning Objectives
LO7-1 Describe the uniform probability distribution and use it to
calculate probabilities.
LO7-2 Describe the characteristics of a normal probability distribution.
LO7-3 Describe the standard normal probability distribution and use
it to calculate probabilities.
LO7-4 Approximate the binomial probability distribution using the
standard normal probability distribution to calculate probabilities.
LO7-5 Describe the exponential probability distribution and use it to
calculate probabilities.
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LO7-1 Describe the uniform probability
distribution and use it to calculate probabilities.
This distribution is
rectangular in shape
and is defined by
minimum (a) and
maximum (b) values.
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LO7-1
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LO7-1
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LO7-1
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LO7-1
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LO7-1
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LO7-1
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LO7-1
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LO7-2 Describe the characteristics of a
normal probability distribution.
Characteristics of a Normal
Probability Distribution
It is bell-shaped and has a single peak at the center of the distribution.
It is symmetrical about the mean.
It is asymptotic: The curve gets closer and closer to the X-axis but never
actually touches it. To put it another way, the tails of the curve extend
indefinitely in both directions.
The location of a normal distribution is determined by the mean, . The
dispersion or spread of the distribution is determined by the standard
deviation, σ.
The arithmetic mean, median, and mode are equal.
As a probability distribution, the total area under the curve is defined to be
1.00.
Because the distribution is symmetrical about the mean, half the area under
the normal curve is to the right of the mean, and the other half to the left of it.
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LO7-2
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LO7-2
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LO7-3
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LO7-3
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LO7-3
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LO7-3
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LO7-3
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LO7-3
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LO7-3
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LO7-3
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LO7-3
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LO7-3
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LO7-3
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LO7-3
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LO7-4 Approximate the binomial probability
distribution using the standard normal
probability distribution to calculate probabilities.
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LO7-4
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LO7-4
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LO7-4
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LO7-4
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LO7-4
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LO7-5 Describe the characteristics and compute
probabilities using the exponential distribution.
Exponential Distribution –
Example
Orders for prescriptions arrive at a
pharmacy management website
according to an exponential
probability distribution at a mean of
one every twenty seconds.
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LO7-5
Exponential Distribution –
Example
Exponential Distribution –
Example
Compton Computers wishes to set a
minimum lifetime guarantee on its
new power supply unit. Quality testing
shows the time to failure follows an
exponential distribution with a mean
of 4000 hours. Note that 4000 hours
is a mean and not a rate. Therefore,
we must compute λ as 1/4000 or
0.00025 failures per hour.
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LO7-5
Exponential Distribution –
Example
In this problem, we need to find the value of x or the average
inter-arrival time so that the probability of a returned unit is 5%.
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