If I calculate the probability of an event and it turns out to be -0.7, 1
2 answers:
You might be interested in
Given:
Amount in the bank account = $1850
Monthly payment of can loan = $400.73
To find:
When would automatic payments make the value of the account zero?
Solution:
Craig stops making deposits to that account. So, amount $1850 in the bank account is used to make monthly payment of can loan.
On dividing the amount by monthly payment, we get
It means, the amount is sufficient for 4 payment but for the 5th payment the amount is not sufficient.
Therefore, the 5th automatic payments make the value of the account zero.
Answer:
11.51% probability that the mean annual salary of the sample is between $71000 and $73500
Step-by-step explanation:
To solve this question, we need to understand the normal probability distribution and the central limit theorem.
Normal probability distribution
Problems of normally distributed samples are solved using the z-score formula.
In a set with mean and standard deviation
, the zscore of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.
Central Limit Theorem
The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean and standard deviation
, the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean
and standard deviation
.
For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.
In this question, we have that:
What is the probability that the mean annual salary of the sample is between $71000 and $73500?
This is the pvalue of Z when X = 73500 subtracted by the pvalue of Z when X = 71000. So
X = 73500
By the Central Limit Theorem
has a pvalue of 0.1151
X = 71000
has a pvalue of 0.
0.1151 - 0 = 0.1151
11.51% probability that the mean annual salary of the sample is between $71000 and $73500