How do I work this problem in Excel Find the following proba
How do I work this problem in Excel? Find the following probabilities based on a standard normal variable Z. a. P(X > 1.32) b. P(Z -1.32) c. P(1.32 Z 2.37) d. P(-1.32 Z 2.37)
Solution
Normal Distribution
Mean ( u ) =0
Standard Deviation ( sd )=1
Normal Distribution = Z= X- u / sd ~ N(0,1)
a)
P(X > 1.32) = (1.32-0)/1
= 1.32/1 = 1.32
= P ( Z >1.32) From Standard Normal Table
= 0.0934
EXCEL FORMULA = ROUND( (1-NORMDIST(1.32,0,1,TRUE)),4))
b)
P(X < = 1.32) = (1 - P(X > 1.32)
= 1 - 0.0934 = 0.9066
EXCEL FORMULA = ROUND( (1 - (1 - (NORMDIST(1.32,0,1,TRUE))),4))
c)
To find P(a < = Z < = b) = F(b) - F(a)
P(X < 1.32) = (1.32-0)/1
= 1.32/1 = 1.32
= P ( Z <1.32) From Standard Normal Table
= 0.90658
P(X < 2.37) = (2.37-0)/1
= 2.37/1 = 2.37
= P ( Z <2.37) From Standard Normal Table
= 0.99111
P(1.32 < X < 2.37) = 0.99111-0.90658 = 0.0845
EXCEL FORMULA = ROUND(NORMDIST(2.37,1,0,TRUE)-NORMDIST(1.32,1,0,TRUE),4))
d)
To find P(a < = Z < = b) = F(b) - F(a)
P(X < -1.32) = (-1.32-0)/1
= -1.32/1 = -1.32
= P ( Z <-1.32) From Standard Normal Table
= 0.09342
P(X < 2.37) = (2.37-0)/1
= 2.37/1 = 2.37
= P ( Z <2.37) From Standard Normal Table
= 0.99111
P(-1.32 < X < 2.37) = 0.99111-0.09342 = 0.8977
EXCEL FORMULA = ROUND(NORMDIST(2.37,1,0,TRUE)-NORMDIST(-1.32,1,0,TRUE),4))
