Is this maximum value normally distributed

Reference no: EM131167281

It can be shown that a sum of normally distributed random variables is also normally distributed. Do all functions of normal random variables lead to normal random variables?

Consider the following. Super Drugs is a chain of drugstores with three similar size stores in a given city. The sales in a given week for any of these stores is normally distributed with mean $15,000 and standard deviation $3000.

At the end of each week, the sales figure for the store with the largest sales among the three stores is recorded.

Is this maximum value normally distributed? To answer this question, simulate a weekly sales figure at each of the three stores and calculate the maximum. Then replicate this maximum 500 times and create a histogram of the 500 maximum values.

Does it appear to be normally shaped? Whatever this distribution looks like, use your simulated values to estimate the mean and standard deviation of the maximum.

Reference no: EM131167281

Questions Cloud

Explain the price elasticity of demand in each market : Describe how high entry barriers into a market will influence long-run profitability of the firms. Explain the competitive pressures that are present in markets with high barriers to entry. Explain the price elasticity of demand in each market struct..

What is the purpose of the form or report : What is the purpose of the form or report? Which of the following specifies that each instance of an entity type must have a unique identifier that is not null?

What value of n makes this claim true : If the claim is that there will be no more than n fatalities in the next month with probability 0.98, what value of n makes this claim true?

Who has a comparative advantage in outlining in typing : Who has the absolute advantage in outlining you or your friend? What about typing? Who has a comparative advantage in outlining? In typing? According to the principle of comparative advantage, who should specialize in which task

Is this maximum value normally distributed : Whatever this distribution looks like, use your simulated values to estimate the mean and standard deviation of the maximum.

How the tragedy is impacting the current population : Given the current situation in many African countries, do we see the Tragedy of the Commons occurring? Consider not only how the “tragedy” is impacting the current population but also how hit may be devastating to coming generations. Give examples an..

About high rates of unemployment : The government is concerned about high rates of unemployment. To spark hiring, it provides tax incentives for the businesses to invest in new capital projects and stimulate job growth. If the sole concern is adding jobs, use the Hicks-Marshall rules ..

What is the elasticity of demand over the price : What is the elasticity of demand over the price range $60 to $80

Determine whether the given graph has an euler circuit : Determine whether the given graph has an Euler circuit. Construct such a circuit when one exists. If no Euler circuit exists, determine whether the graph has an Euler path and construct such a path if one exists.

User Account

All Pages