Probability Statistical Distributions and Computation - Essay Example

The discrete variable does not touch every value while changing its position. Discrete variables include the price of commodities etc. The chapter elaborates on the characteristics of Normal distribution, which include:
 Continuous probability random variable,
 Uni-modal, bell-shaped
 Symmetrical to the mean
 Mean = median = mode = μ
 The area under the normal distribution is equal to unity i.e. 1.00 approximately

 68% of the area under the curve is within one standard deviation of the mean (i.e. between μ +- σ)
 95% of the area under the curve is within two standard deviations of the mean (i.e. between μ +- 2 σ)
 99.7% of the area under the curve is within three standard deviations of the mean (i.e. between μ +- 3 σ)
 The Mean of the normal distribution is equal to 4/5 of its standard deviation (σ)
 All odd-order moments about mean in a normal distribution vanish i.e. μ2n+1= 0 and μ2n+3= 0
 The normal distribution has points of inflection, which are equalling at μ + σ and μ - σ
 The random variable has an infinite theoretical range: -¥ to +¥ Read More