The random variable x has a normal distribution with μ=1000 and σ=10.

a. Find the probability that x assumes a value more than 2 standard deviations from its mean. More than 3 standard deviations from .μ

b. Find the probability that x assumes a value within 1 standard deviation of its mean. Within 2 standard deviations of μ.

c. Find the value of x that represents the 80th percentile of this distribution. The 10th percentile.

Short Answer

Expert verified
  1. The probability of x more than 2 standard deviations from its mean is 0.0228 and the probability of x more than 3 standard deviations from its mean is 0.0013.
  2. The probability of x within 1 standard deviation from its mean is 0.6826 and the probability of x within 2 standard deviations from its mean is 0.9544.
  3. The value ofx0for 80th percentile is 1008.416 and the value ofx0for 10th percentile is 987.184.

Step by step solution

01

Given information

x is a random variable that is a normal distribution with μ=1000and σ=10

02

Finding the probability when x assumes a value more than 2 standard deviations from its mean and more than 3 standard deviations from μ.

a.

The probability of x assumes a value more than 2 standard deviations from its mean is,

p(x>μ+2σ)=Px>1000+2×10=Px>1020=Pz>2z=1020-100010=1-Pz2=1-Pz<2=1-0.9772=0.0228

Therefore, the value of x more than the 2 standard deviations from its mean is 0.0228.

Again,

The probability of x assumes a value more than 3 standard deviations from its mean is,

p(x>μ+3σ)=Px>1000+3×10=Px>1030=Pz>3z=1030-100010=1-Pz3=1-Pz<3=1-0.9987=0.0013

Therefore, the value of x more than the 3 standards deviation from its mean is 0.0013.

03

Step 3: Find the probability that x assumes a value within 1 standard deviation of its mean. Within 2 standard deviations of μ.

b.

The probability of x assumes a value within 1 standard deviation from its mean is,

p(μ-σ<x<μ+σ)=P1000-10<x<1000+10=P990<x<1010=P-1<z<1z=x-μσ=Pz<1-1-Pz<1=0.8413-(1-0.8413)=0.8413-0.1587=0.6826

Therefore, the probability of x within 1 standard deviation from its mean is 0.6826.

Again,

The probability of x assumes a value within 2 standard deviations from its mean is,

p(μ-2σ<x<μ+2σ)=P1000-2<x<1000+20=P980<x<1020=P-2<z<2z=x-μσ=Pz<2-1-Pz<2=0.9772-(1-0.9772)=0.9772-0.0228=0.9544

Therefore, the probability of x within 2 standard deviations from its mean is 0.9544.

04

Finding the percentiles values

c.

Assume thatx0 is the 80th percentile of the distribution,

So, the value of the 80th percentile is,

P(x<x0)=0.80Px-μσx0-μσ=0.80Pzx0-1000σ=0.80Φx0-1000σ=0.80x0-1000σ=Φ-10.80x0=1000+10×Φ-10.80x0=1000+10×0.8416x0=1008.416

Therefore, the value ofx0 for 80th percentile is 1008.416.

Again, assume thatx0 is the 10th percentile of the distribution.

So, the value of the 10th percentile is,

P(x<x0)=0.10Px-μσx0-μσ=0.0Pzx0-1000σ=0.10Φx0-1000σ=0.10x0-1000σ=Φ-10.10x0=1000+10×Φ-10.10x0=1000+10×-1.2816x0=987.184

Therefore, the value ofx0 for 10th percentile is 987.184.

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