E370

2/24/2016
Continuing Continuous
Random Variablesflow
Chart
E370 Family of Continuous Distributions
Uniform: simplest continuous distribution,
sometimes called a rectangular distribution,
represented by a line (curve) parallel to the x-
axis defined over a specified interval (a,b). The
distance from the x-axis to the curve is the pdf.
Parameters are a and b.
Normal Family: One of the most important
continuous distributions; an infinite number of
normal distributions, each defined by its
parameters, and ; a bell-shaped and
symmetric distribution.
Using the Normal for Approximations:
Approximate the Binomial Using the Normal
The Standard Normal: Transforms any
normal into the number of standard deviations its
values are away from its mean.
The Students t: A family of approximations
of the Standard Normal; a one parameter
distribution each described completely by its
degrees of freedom (df). Centered at 0, units are
approximate standard deviations.
X~U(a,b) = = ()
()
P(c<x<d) = ()
(+) ()
= =
= =
X~N(, ) ** =NORM.DIST(x, , , 1) ** =NORM.INV(, , )
** If the binomial is sufficiently symmetric [(n*)>5 AND n*(1-)>5], the normal can
provide a reasonable approximation of binomial probabilities. ** The use of the
Continuity Correction Factor (CCF = +/- 0.5) is essential for accurate estimates. ** Its
usefulness diminishes as n increases, although there is no rule for when it can be
ignored. ** Use the expected values of the specific binomial for the parameters in the
NORM.DIST or NORM.INV commands.
~(, ) ** = ** =NORM.S.DIST(Z,1) ** =NORM.S.INV()
Use by itself to compare relative locations of two different normal distributions. Use in
conjunction with other statistics for confidence intervals and hypothesis testing.
X~t(df) ** =
( )
** =T.DIST(t,df,1) ** =T.INV(,df)
Use when the population standard deviation, , is unknown, in conjunction with other
statistics for confidence intervals and hypothesis testing.