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Problems On Normal Distribution

The document contains 15 problems involving calculations of probabilities using the normal distribution. The problems cover a range of scenarios including cash flows, test scores, sales data, product weights, and more. They require finding probabilities that a random variable falls within or outside of given ranges, determining percentile cutoffs, and identifying mean and standard deviation values based on the given probability distributions.

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Ravindra Babu
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262 views2 pages

Problems On Normal Distribution

The document contains 15 problems involving calculations of probabilities using the normal distribution. The problems cover a range of scenarios including cash flows, test scores, sales data, product weights, and more. They require finding probabilities that a random variable falls within or outside of given ranges, determining percentile cutoffs, and identifying mean and standard deviation values based on the given probability distributions.

Uploaded by

Ravindra Babu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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PROBLEMS ON NORMAL DISTRIBUTION

1. A project yields an average cash flow of Rs. 500 lakhs, with a standard
deviation of Rs. 60 lakhs. Calculate the following probabilities:
(a) Cash flow will be more than Rs. 560 lakhs.
(b) Cash flow will be less than Rs. 420 lakhs.
(c) Cash flow will lie between Rs. 460 lakhs and Rs. 540 lakhs.
(d) Cash flow will be more than Rs. 680 lakhs.
(e) Cash flow will be more than Rs. 470 lakhs.
(f) Cash flow will be less than Rs. 550 lakhs.
(g) Cash flow will be between Rs. 580 lakhs and Rs. 540 lakhs.
(h) Cash flow will be between Rs. 440 lakhs and Rs. 480 lakhs.
2. X is a normal variate with mean 42 and standard deviation 4. Find the
probability that a value taken by X is:
(a) less than 50,
(b) greater than 50,
(c) less than 40,
(d) greater than 40,
(e) between 43 and 46,
(f) between 40 and 44, and
(g) between 37 and 41.
3. For a normal distribution with mean 60 and standard deviation 6, calculate the
following:
(a) probability that the random variable takes a value less than 40;
(b) probability that the random variable takes a value greater than 68; and
(c) probability that the random variable lies between 50 and 64.
4. The sales manager knows from his experience that the sales are normally
distributed with Mean=Rs. 80 lakhs, with the Standard Deviation= Rs. 7 lakhs.
What is the probability that sales for the next year will lie between Rs. 75
lakhs and Rs. 85 lakhs?
5. A manufacturer produces airmail envelopes whose weights are normal with
Mean=1.95 grams and Standard Deviation = 0.05 grams. The envelopes are
sold in lots of 500. How many envelopes in a lot will be heavier than 2 grams
and how many will be lighter than 1.90 grams?
6. Mean life of electric bulbs manufactured by a firm is 1200 hours and standard
deviation is 200 hours.
(a) In a lot of 10,000 bulbs, how many bulbs are expected to have life of 1050
hours or more?
(b) What is the percentatge of bulbs, which are expected to fuse before 1500
hours of service?
7. The average selling price of flats in a newly developed part of Ahmedabad
City is Rs. 1,80,000. If the standard deviation price is Rs. 15,000, what per
cent of the flats sell for more than Rs. 2,00,000?
8. A cement manufacturing company guarantees that the weight of the cement
bag is 25 kgs. In fact, the process by which the bags are filled gives normally
distributed weights with mean 25 kgs and standard deviation o.6 kgs. What is
the probability that a big will not contain guaranteed weight?
9. The first and third quartile of a normal distribution are 41 and 60.4
respectively. Find the median.
10. The first quartile and third quartile of a normal distribution are 25 and 50
respectively. Find the mean.
11. The mean and standard deviation marks scored by a group of students in an
examination are 47 and 10 respectively. If only 20% of the students have to
be promoted, what should be the marks limit for promotion?
12. In a normal distribution, 15% items are below 35, 75% items are between 35
and 65 and 10% items are above 65. Find the mean and standard deviation.
13. 1200 students took an examination. Their mean marks are 53. The standard
deviation is 15. Assume normal distribution of marks.
(a) If 50 is the marks required for passing, what is the probability that a
randomly selected student passes?
(b) How many students are expected to score above 50?
(c) If only 40% of the students are required to be promoted, what should be
the marks for promotion?
14. In a normal distribution, 20% of the observations are greater than 70 and 10%
lie between 65 and 70. Find the mean and standard deviation of the
distribution.
15. If mean is µ and standard deviation is , find the probability that::
(a) P(µ-  X  µ+)
(b) P(µ-2  X  µ+2)
(c) P(µ-3  X  µ+3)
(d) P(µ-1.96  X  µ+1.96)
(e) P(µ-2.58  X  µ+2.58)
(f) P(X  µ+1.65)
(g) P(X  µ+2.33)
(h) P(X  µ-1.65)
(i) P(X  µ-2.33)

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