### Compare fit of normal distribution cdf to the empirical cdf

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Question: As discussed in the text, it often is possible to use a theoretical distribution as an approximation of the distribution of some sample data. It is always important, however, to check to make sure that your data really do fit the distribution you propose to use. Consider the solar trash compactor data again. We calculated the sample mean = \$1,005 and the sample standard deviation s ¼ \$204. Taking these as approximately equal to μ and σ, find the normal cumulative probabilities for operating costs of \$700, \$800, \$900, \$1,000, \$1,200, and \$1,400. How do these theoretical normal probabilities compare with the data-based probabilities from the CDF in Figure 10.7? Do you think that the normal distribution is an appropriate distribution to use in this case? Compare the fit of the normal distribution CDF to the empirical CDF by superimposing them onto one graph.

#### Questions Cloud

 The roi of a cloud deployment : This assignment consists of three (3) sections: a narrative, a ROI Spreadsheet, and a project outline. Estimate small probability values : It was suggested that five is the minimum number of data points for the least likely category when constructing discrete distributions. What is the value of the preffered stock : What is the value of the preffered stock if it pays a \$5 dividend? Obtain an output with a simple linear regression : Obtain an output with a simple linear regression and a scatterplot graph (as in the tutorial) using the values as seen below. Compare fit of normal distribution cdf to the empirical cdf : As discussed in the text, it often is possible to use a theoretical distribution as an approximation of the distribution of some sample data. Weaknesses of informal specifications : What are the weaknesses of informal specifications? Synthesis and summary of the two articles : Research at least two articles on the topic of big data and its business impacts. Write brief synthesis and summary of the two articles. What option strategies can be used to lock in exchange rate : What option strategies can be used to lock in an exchange rate between \$0.7 USD/CAD and \$0.8 USD/CAD? Compare the normal distribution to empirical distribution : The normal distribution is often used with measurement variables such as height and weight. Compare the normal distribution to the empirical distribution.

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