Define Normal probability distribution.
1) If the random variable X has a cruel of µ and a standard Deviation s, then (X-µ)/s has a mean and standard Deviation respectively-
a) and
b) and s
c) 0 and 1
d) 1 and 0
2) The price-to-earnings ratio for firms in a given industry is distributed according to normal Distribution. In this industry and a firm with a standard normal variable value of Z=1:
a) Has an above average price-to-earnings ratio
b) Has a below average price-to-earnings ratio
c) Has an average price-to-earnings ratio
d) May have an above average or below average price-to-earnings ratio
3) describe the normal approximation of the binomial Distribution is appropriate when:
a) Np ³ 5
b) N (1-p) ³ 5
c) Np ≤ 5
d) Np ³ 5 anD N (1-p) ≤ 5
e) Np ³ 5 anD N (1-p) ³ 5
4) Which of the subsequent statements is not a property of the normal probability Distribution?
a) The normal Distribution is symmetric
b) 95.44% of all possible observed values of the random variable x are within plus or minus three standard deviations of the population mean
c) The mean, median and mode are equal
d) The area under the normal curve to the right of the mean is equal to the area under the normal curve to the left of the mean
e) All of the above answers are properties of the normal distribution