APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS

(EVEN SEMESTER AY 2022-2023)

Course Title: Applied Statistics

Course Code: MAT1003

Module 3: Probability distributions

Topics:
Introduction to Random variables
Types of random variables
Discrete random variable
Continuous random variable
Probability Distributions
Probability mass and density functions
Binomial distribution
Poisson distribution
Normal, Standard Normal distributions
Exponential Distributions

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Introduction to random variables

It is known that for a random experiment we have a set of possible outcomes (sample points).

A rule that assigns a real number to each outcome of a random experiment is referred to as a
random variable.

From the above definition, it is clear that there is a value for each outcome, which it takes with
certain probability.

We can also say that a random variable is a function defined over the sample space of an
experiment and generally assumes different values with a definite probability associated with
each value. Generally, a random variable is denoted by capital letters like X, Y, Z, … whereas the
values of a random variable are denoted by the corresponding small letters like x, y, z …….

A list of values of a random variable together with their corresponding probabilities of

occurrence, is termed as Probability distribution.

Example 1

Suppose that two coins are tossed. So, the sample space is S = {HH, HT, TH, TT}. Let, X represent
the number of heads which can come up. With respect to each sample point we can associate a
number for X as shown in the table below:

Sample point HH HT TH TT
X 2 1 1 0

Thus, the random variable X takes the values 0, 1, 2 for this random experiment.
The above example takes only a finite number of values and for each random value we can
associate a probability as shown in the table.

X = x (No. of heads) 0 1 2
P(X = x) ¼ ½ ¼

Observe that the sum of the probabilities of the random variable is equal to one.

Example 2

If 3 coins are tossed, the random variable 𝑋 = 𝑛𝑜. 𝑜𝑓 ℎ𝑒𝑎𝑑𝑠 will be assuming the values X=0,
X=1, X=2, X=3 and sum of their respective probabilities would be equal to 1.

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

X = x (No. of heads) 0 1 2 3
P(X = x) 1 3 3 1
8 8 8 8
Discrete random variable

If a random variable takes only a finite or a countable number of values, it is called a discrete
random variable.

For example, when 3 coins are tossed, the “number of heads obtained” is the random variable,
X which assumes the values 0,1,2,3, which form a finite set. Such a variable is a discrete
random variable.
Probability mass function

Suppose a discrete random variable 𝑋 assumes values 𝑥1 , 𝑥2 , … , 𝑥𝑛 . Then the

probability that 𝑋 assumes a particular value 𝑥𝑖 is denoted as 𝑃(𝑋 = 𝑥𝑖 ). It follows that
𝑃(𝑋 = 𝑥𝑖 ) is a probability mass function if it satisfies:
i. 0 ≤ 𝑃(𝑋 = 𝑥𝑖 ) ≤ 1, for each 𝑥𝑖 , 𝑖 = 1,2, … , 𝑛
ii. ∑𝑛𝑖=1 𝑃(𝑋 = 𝑥𝑖 ) = 1

Note: The concept of probability distribution is similar to that of frequency distribution. It is usually
represented in a tabular form given below:

X x1 x2 x3 … xn
P(X = x) P(x=x1) P(x=x2) P(x=x3) … P(x=xn)

Remarks:

1. 𝑃(𝑋 ≤ 𝑎) = 1 − 𝑃(𝑋 > 𝑎) (since 𝑃(𝑋 ≤ 𝑎) + 𝑃(𝑋 > 𝑎) = 1)

2. 𝑃(𝑋 ≥ 𝑎) = 1 − 𝑃(𝑋 < 𝑎)
3. If a, 𝑏1 , 𝑏2 , … , 𝑏𝑛 , 𝑏 are values assumed by a discrete random variable in ascending order
then,
(i) 𝑃(𝑎 ≤ 𝑋 ≤ 𝑏) = 𝑃(𝑋 = 𝑎) + 𝑃(𝑥 = 𝑏1 ) + 𝑃(𝑥 = 𝑏2 ) + ⋯ + 𝑃(𝑥 = 𝑏𝑛 ) + 𝑃(𝑋 =
𝑏)
(ii) 𝑃(𝑎 < 𝑋 ≤ 𝑏) = 𝑃(𝑥 = 𝑏1 ) + 𝑃(𝑥 = 𝑏2 ) + ⋯ + 𝑃(𝑥 = 𝑏𝑛 ) + 𝑃(𝑋 = 𝑏)
(iii) 𝑃(𝑎 ≤ 𝑋 < 𝑏) = 𝑃(𝑋 = 𝑎) + 𝑃(𝑥 = 𝑏1 ) + 𝑃(𝑥 = 𝑏2 ) + ⋯ + 𝑃(𝑥 = 𝑏𝑛 )
(iv) 𝑃(𝑎 < 𝑋 < 𝑏) = 𝑃(𝑥 = 𝑏1 ) + 𝑃(𝑥 = 𝑏2 ) + ⋯ + 𝑃(𝑥 = 𝑏𝑛 )

Continuous random variables

A random variable X which can take any value over a certain specified intervals is called
a continuous random variable.

For example, the heights of students selected at random in a particular class may lie between
150cm to 190cm. So, heights of students from a randomly selected class is a continuous
random variable.

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

The maximum life of electric bulbs is 2000 hours. For this, the continuous random variable will
be X = {x | 0 ≤ 𝑥 ≤ 2000}

Probability density function (p.d.f.)

Let 𝑋 be a continuous random variable. 𝑓(𝑥) is said to be the p.d.f. of 𝑋 if:

i. 0 ≤ 𝑓(𝑥) ≤ 1, −∞ < 𝑥 < ∞
∞
ii. ∫−∞ 𝑓(𝑥)𝑑𝑥 = 1
Remarks: 𝑏
iii. 𝑃(𝑎 < 𝑋 < 𝑏) = ∫𝑎 𝑓(𝑥)

Remarks:

1. 𝑃(𝑋 ≤ 𝑎) = 1 − 𝑃(𝑋 > 𝑎)

2. 𝑃(𝑋 ≥ 𝑎) = 1 − 𝑃(𝑋 < 𝑎)
𝑎
3. If 𝑋 is a continuous random variable then 𝑃(𝑋 = 𝑎) = ∫𝑎 𝑓(𝑥)𝑑𝑥 = 0
4. In view of remark (3) above, it follows that, if X is a continuous random variable, then
𝑃(𝑎 < 𝑋 < 𝑏) = 𝑃(𝑎 ≤ 𝑋 < 𝑏) = 𝑃(𝑎 < 𝑋 ≤ 𝑏) = 𝑃(𝑎 ≤ 𝑋 ≤ 𝑏)

Binomial Distribution

The probability distribution of a binomial random variable X, denoted by 𝑋~𝐵𝑖𝑛(𝑛, 𝑝) is defined

as

𝑃(𝑋 = 𝑥) = 𝑛𝐶 𝑥 𝑝 𝑥 𝑞𝑛−𝑥 , 𝑥 = 0, 1, 2, … , 𝑛

where 𝑝 is the probability of success, 𝑞 is the probability of failure; 𝑛 being the number of trials
and 𝑥 denoting the number of successes. The above formula gives the probability of “x” number
of successes in “n” independent trials for a binomial experiment.

Remarks:

1. Each success occurs with probability “p” and each failure with probability “q”.
Since there are only two outcomes on each trial, we have 𝑝 + 𝑞 = 1 𝑜𝑟, 𝑞 = 1 − 𝑝.
2. The mean and variance of a binomial distribution 𝐵𝑖𝑛(𝑛, 𝑝) are
𝜇 = 𝑛𝑝; 𝜎 2 = 𝑛𝑝𝑞 𝑜𝑟, 𝜎 = √𝑛𝑝𝑞

Conditions for application of Binomial distribution

1. The variable should be discrete, i. e. the values of x could be 1,2,3, etc. and never be 1.5,
2.4, etc.
2. A dichotomy exists. In other words, the underlying experiment must have two and only
two alternatives denoted as “success” and “failure” respectively.
3. The number of trials ‘n’ should be finite and small.
4. The trials or events must be independent. The happening of one event must not affect the
happening of other events. In other words, statistical independence must exist.
5. The trials or events must be repeated under identical conditions.

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Characteristics of Binomial distribution

1. It is a discrete distribution which gives the theoretical probabilities.
2. It depends on the parameters p, the probability of success and n, the number of trials. The
parameter n is always a positive integer.
3. The distribution will be symmetrical if p = q. It is asymmetric if pq although with n
tending to be large it is approximately so.
4. It can be represented graphically, taking the X-axis to represent the number of successes
and Y-axis to represent the probabilities or frequencies. Its graph will be vertical lines,
with spaces in between them. Drawing a smooth curve by free hand is inadmissible as
the variable x is a discrete one.
5. The shape and location of a Binomial distribution changes as p changes for a given n or n
changes for a given p.

Some situations where Binomial distribution is applicable

1. Tossing a coin.
2. Birth of a child.
3. A candidate passing or failing an exam
4. A candidate clearing an interview or failing it
5. A patient responding or not responding to a particular treatment

Problems on Binomial distribution

1. On average, every one out of 10 telephones is found busy. Six telephone numbers are
selected at random. Find the probability that four of them will be busy.

Solution:
Let X: event of getting a busy phone number
p = P(probability of getting a phone number busy) = 1/10
q = P(probability of not getting a phone number busy) = 9/10

The required probability = P(X = 4) = 6C4 p4 q(6 – 4)= 0.001215.

2. A bag contains 5 green balls and 3 red balls. If two balls are drawn from the bag randomly
with replacement, find the probability distribution of the number of green balls drawn.

Solution:
Let p = P(getting a green ball) = 5/(5 + 3) = 5/8
q = P(not getting a green ball) = 1 – 5/8 = 3/8
X = event of drawing the green ball, then the value of X could be 0, 1, 2
P(X = 0) = Probability of getting no green ball = 2C0 p0 q2 – 0 = 9/64
P(X = 1) = Probability of getting one green ball = 2C1 p1 q2 – 1 = 15/32
P(X = 2) = Probability of getting 2 green balls = 2C2 p2 q2 – 2 = 25/64

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

3. A box of candies has many different colors in it. There is a 15% chance of getting a pink
candy. What is the probability that exactly 4 candies in a box are pink out of 10?

Solution:
n = 10,
Let X be the event getting pink candy
p=P(Probability of getting pink)=0.15,
q= P(Probability of not getting pink)=0.85,
P(x=4)= 10𝐶4 (0.5)4 (0.85)10−4 = 0.04

4. Assuming that it is true that 3 in 10 industrial accidents are due to fatigue, find the
probability that:
(a) Exactly 3 of 7 industrial accidents will be due to fatigue.
(b) At least 3 of the 7 industrial accidents will be due to fatigue.
(c) At most 3 out of 7 industrial accidents will be due to fatigue
(d) none of the 7 accidents are due to fatigue
(e) all the 7 accidents are due to fatigue

Solution:

Let 𝑋 denote the number of accidents due to fatigue.

Either an accident is due to fatigue or it is not i. e. the situation is dichotomous in nature.
Hence, we use a Binomial distribution to model it.
3
Probability of success 𝑝 = 10 = 0.3. Hence, probability of failure, 𝑞 = 1 − 0.3 = 0.7

Here, the total number of trails, 𝑛 = 7, the total number of accidents under consideration.

Required mathematical model is 𝐵𝑖𝑛(8, 0.2) = 8𝐶 𝑥 (0.8)𝑥 (0.2)8−𝑥 , where 𝑥 = 0,1,2, … ,8

7 −3
(a) P(X=3) = C3 (0.3) (0.7) = 0.2268
7 3

(b) P(X3) = 1−P(X<3) = 1−{P(X=0)+P(X=1)+P(X=2)}

7 −0
P(X=0) = C0 (0.3) (0.7)
7 0
= 0.082 ; P(X=1) = 7C1 (0.3)1 (0.7)7 −1 = 0.247
7−2
P(X=2) = C2 (0.3) (0.7)
7 2
= 0.318
P(X3) = 1−(0.082+0.247+0.318) = 0.353

(c) 𝑃(𝑋 ≤ 3) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2) + 𝑃(𝑋 = 3) = 0.082 + 0.247 +

0.318 + 0.227 = 0.874

(d) 𝑃(𝑋 = 0) = 0.082

(e) 𝑃(𝑋 = 7) = 0.000218

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Practice problems
1. The probability that a certain kind of component will survive a shock test is 3/4. Find the
probability that exactly 2 of the next 4 components tested survive.

[Hint: Let X be the random variable defined as “number of components surviving the test”.

Then the random variable X follows the binomial distribution with 𝑝 = 3/4 and 𝑛 = 4.
Clearly, 𝑞 = 1/4.
.
The probability of getting of “x” successes in “n” independent trials is given by

𝑃(𝑋 = 𝑥) = 𝑛𝐶 𝑥 𝑝 𝑥 𝑞𝑛−𝑥 , 𝑥 = 0, 1, 2, … , 𝑛

Hence the probability that exactly 2 of the next 4 components tested survive is

3 2 1 2 27
𝑃(𝑋 = 2) = 4𝐶 2 (4) (4) = 128 = 0.2109]

2. It has been observed that 2 out of 10 bulbs manufactured by a company are defective.
a. Construct a suitable mathematical model, which represents the number of
defective bulbs manufactured by the company out of a total of 𝑛 bulbs.
b. If a box of 10 bulbs is selected, what is the probability that at most 3 are defective?
c. If a box containing 10 bulbs is selected, what is the probability that more than 7
are defective?
d. If 50 bulbs each are picked up, what is the expected mean number of defective
bulbs?

[Hint: Either a bulb is defective or is not i. e. the situation is dichotomous in nature. Hence, we
use a Binomial distribution to model it.
2
Probability of success 𝑝 = 10 = 0.2. Hence, probability of failure, 𝑞 = 1 − 0.2 = 0.8
a. Required mathematical model 𝑛𝐶 𝑥 (0.2)𝑥 (0.8)𝑛−𝑥 , where 𝑛 denotes the number of
trails and 𝑥 the number of successes.
b. 𝑛 = 10.
𝑃(𝑋 ≤ 3) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2) + 𝑃(𝑋 = 3).

𝑃(𝑋 = 0) = 10𝐶 0 (0.2)0 (0.2)10−0 = 10𝐶 0 (0.2)0 (0.8)10 = 0.1074

𝑃(𝑋 = 1) = 10𝐶 1 (0.2)1 (0.2)10−1 = 10𝐶 1 (0.2)1 (0.8)9 = 0.2684
𝑃(𝑋 = 2) = 10𝐶 2 (0.2)2 (0.2)10−2 = 10𝐶 2 (0.2)2 (0.8)8 = 0.3020
𝑃(𝑋 = 3) = 10𝐶 3 (0.2)3 (0.2)10−3 = 10𝐶 3 (0.2)3 (0.8)7 = 0.2013

𝑃(𝑋 ≤ 3) = 0.1074 + 0.2684 + 0.3020 + 0.2013 = 0.8791

c. 𝑃(𝑋 ≥ 7) = 𝑃(𝑋 = 7) + 𝑃(𝑋 = 8) + 𝑃(𝑋 = 9) + 𝑃(𝑋 = 10)

𝑃(𝑋 = 7) = 10𝐶 7 (0.2)7 (0.2)10−7 = 10𝐶 7 (0.2)7 (0.8)3

𝑃(𝑋 = 8) = 10𝐶 8 (0.2)8 (0.2)10−8 = 10𝐶 8 (0.2)8 (0.8)2

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

𝑃(𝑋 = 9) = 10𝐶 9 (0.2)9 (0.2)10−9 = 10𝐶 2 (0.2)9 (0.8)1

𝑃(𝑋 = 10) = 10𝐶 10 (0.2)10 (0.2)10−10 = 10𝐶 10 (0.2)10 (0.8)0

𝑃(𝑋 ≥ 7) = 0.00007 (approx.)

d. 𝑛 = 50. We know that mean for a Binomial distribution is 𝑛𝑝. Thus, the expected
mean number of people who respond to treatment = 50 × 0.2 = 10]

3. It has been observed that during the rainy season, a person reaches his office on time only
4 out of 10 days.
a. Construct a suitable mathematical model, which represents the number of days
out of 𝑛 days, the person reaches his office on time during rainy days.
b. If it rains consecutively for 5 days, what is the probability that the person reaches
his office on time exactly for 4 days?
c. If it rains consecutively for 5 days, what is the probability that the person reaches
his office on time at most for 2 days?
d. If it rains consecutively for 15 days, what is the expected mean number of days on
which he reaches office exactly on time?

[Hint: Either a person reaches on time or he does not i. e. the situation is dichotomous in nature.
Hence, we use a Binomial distribution to model it.
4
Probability of success 𝑝 = = 0.4. Hence, probability of failure, 𝑞 = 1 − 0.4 = 0.6
10
a. Required mathematical model 𝑛𝐶 𝑥 (0.4)𝑥 (0.6)𝑛−𝑥 , where 𝑛 denotes the number of
trails and 𝑥 the number of successes.
b. 𝑛 = 5.

𝑃(𝑋 = 4) = 5𝐶 4 (0.4)4 (0.6)5−4 = 5𝐶 4 (0.4)4 (0.6)1 = 0.0768

c. 𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2)

𝑃(𝑋 = 0) = 5𝐶 0 (0.4)0 (0.6)5−0 = 5𝐶 0 (0.4)0 (0.6)5 = 0.0777

𝑃(𝑋 = 1) = 5𝐶 1 (0.4)1 (0.6)5−1 = 5𝐶 1 (0.4)1 (0.6)4 = 0.2592
𝑃(𝑋 = 2) = 5𝐶 2 (0.4)2 (0.6)5−2 = 5𝐶 2 (0.4)2 (0.6)3 = 0.3456

𝑃(𝑋 ≤ 2) = 0.6826

d. 𝑛 = 15. We know that mean for a Binomial distribution is 𝑛𝑝. Thus, the expected
mean number of people who respond to treatment = 15 × 0.4 = 6]

4. It has been observed that 1 child out of 2 children being born is likely a female child.
a. Construct a suitable mathematical model, which represents the number female
children born out of 𝑛 childbirths.
b. If 6 children are born in a particular instant, what are the chances that exactly 4
are female?
c. If 6 children are born in a particular instant, what are the chances that at most 2
are females?
d. If 20 new-borns are considered, what is the expected mean number of female
children?

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

[Hint: Either a new-born is a male child or a female child i. e. the situation is dichotomous in
nature. Hence, we use a Binomial distribution to model it.

Success: birth of a female child

1
Probability of success 𝑝 = 2 = 0.5. Hence, probability of failure, 𝑞 = 1 − 0.5 = 0.5
a. Required mathematical model 𝑛𝐶 𝑥 (0.5)𝑥 (0.5)𝑛−𝑥 , where 𝑛 denotes the number of
childbirths and 𝑥 the number of female children.
b. 𝑛 = 6.

𝑃(𝑋 = 4) = 6𝐶 4 (0.5)4 (0.5)6−4 = 6𝐶 4 (0.5)6 = 0.234375

c. 𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2)

𝑃(𝑋 = 0) = 6𝐶 0 (0.5)0 (0.5)6−0 = 6𝐶 0 (0.5)6 = 0.015625

𝑃(𝑋 = 1) = 6𝐶 1 (0.5)1 (0.5)6−1 = 6𝐶 1 (0.5)6 = 0.09375
𝑃(𝑋 = 2) = 6𝐶 2 (0.5)2 (0.5)6−2 = 6𝐶 2 (0.5)6 = 0.234375

𝑃(𝑋 ≤ 2) = 0.34375

d. 𝑛 = 20. We know that mean for a Binomial distribution is 𝑛𝑝. Thus, the expected
mean number of people who respond to treatment = 20 × 0.5 = 10

5. The probability that a patient recovers from a rare blood disease is 0.4. If 15 people are
known to have contracted the disease, what is the probability that (a) at least 3 survive
(b) from 3 to 5 survive and (c) exactly 5 survive?

[Hint: Let X be the random variable defined as “number of patients surviving the disease”.
Then the random variable X follows the binomial distribution with 𝑝 = 0.4 and 𝑛 = 15. Clearly,
𝑞 = 0.6. The probability of getting of “x” successes in “n” independent trials is given by

𝑃(𝑋 = 𝑥) = 𝑛𝐶 𝑥 𝑝 𝑥 𝑞𝑛−𝑥 , 𝑥 = 0, 1, 2, … , 𝑛

(a) Probability that at least 10 survive is calculated as follows:

𝑃(𝑋 ≥ 3) = 1 − 𝑃(𝑋 < 3) = 1 − {𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2)}

(b) Probability that from 3 to 8 survive is calculated as follows:

𝑃(3 ≤ 𝑋 ≤ 5) = 𝑃(𝑋 = 3) + 𝑃(𝑋 = 4) + 𝑃(𝑋 = 5)

(c) Probability that exactly 5 survive is calculated as follows:

𝑃(𝑋 = 5) = 15𝐶 5 (0.4)5 (0.6)15−5 ]

6. The probability that a pen, manufactured by a company, will be defective is 1/10. If 12

such pens are manufactured, find the probability that (a) exactly two will be defective (b)
at least two will be defective and (c) none will be defective.

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

[Hint: Let X be the random variable defined as “number of defective pens”.

Then the random variable X follows the binomial distribution with 𝑝 = 0.1 and 𝑛 = 12, Clearly,
𝑞 = 0.9.
(a) Probability that exactly 2 will be defective is 𝑃(𝑋 = 2) = 12𝐶 2 (0.1)2 (0.9)10

(b) Probability that at least 2 will be defective is

𝑃(𝑋 ≥ 2) = 1 − 𝑃(𝑋 < 2) = 1 − {𝑃(𝑋 = 0) + 𝑃(𝑋 = 1)}

(c) Probability that none will be defective is 𝑃(𝑋 = 0) = 12𝐶 0 (0.1)0 (0.9)12

Poisson distribution

The probability distribution of a Poisson random variable X, denoted by 𝑋~𝑃𝑜𝑖(𝜆) is defined as

𝑒 −𝜆 𝜆𝑥
𝑃𝑜𝑖(𝜆) = 𝑃(𝑋 = 𝑥) = , 𝑥 = 0,1, 2, …
𝑥!

where “𝜆” is the mean (average) number of outcomes per unit time or distance or area or volume
and “ x ” represents the number of outcomes occurring (or the number of times an event
occurring) in a given time interval or in a specified region.

The mean and variance of the Poisson distribution 𝑃𝑜𝑖(𝜆) are given by
𝜇 = 𝜆; 𝜎 2 = 𝜆 𝑜𝑟, 𝜎 = √𝜆

Some examples of Poisson distribution

i. The number of people turning up at a railway ticket counter over a specified time.
ii. The number of defective screws per box of 1000 screws.
iii. The number of printing mistakes in each page of the first proof of a book.

Conditions for application of Poisson distribution

1. The random variable X should be discrete.

2. Each occurrence must be independent of other occurrences.
3. Consecutive occurrences should be separated by an interval of time or area or length or
volume etc.
4. The expected rate of number of occurrences should be constant.

Examples
1. If 5% of the electric bulbs manufactured by a company are defective, use Poisson
distribution to find the probability that in a sample of 100 bulbs
a) none is defective
b) 5 bulbs will be defective

Solution:

Let 𝑋 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑒𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑏𝑢𝑙𝑏𝑠 𝑖𝑛 𝑎 𝑠𝑎𝑚𝑝𝑙𝑒 𝑜𝑓 100. Then the random variable X
follows the Poisson distribution with 𝜆 = 𝑛𝑝.Thus, 𝜆 = 100𝑥0.05 = 5

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Where, p=5%=0.05
𝑒 −5 5𝑥
𝑃(𝑋 = 𝑥) = , 𝑥 = 0,1, 2, …
𝑥!
(a) The probability that none of the bulbs are defective is
𝑒 −5 50
𝑃(𝑋 = 0) = = 0.007
0!
The probability of 5 defective bulbs is given by
𝑒 −5 55
𝑃(𝑋 = 5) = = 0.1754
5!

2. Between the hours 2 p.m. and 4 p.m., the average number of phone calls per minute coming
into the switch board of a company is 2.35. Find the probability that during one particular
minute, there will be at most 2 phone calls and more than 2 phone calls

Solution:
Let 𝑋 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑡𝑒𝑙𝑒𝑝ℎ𝑜𝑛𝑒 𝑐𝑎𝑙𝑙𝑠 𝑝𝑒𝑟 𝑚𝑖𝑛𝑢𝑡𝑒. Then the random variable X follows
the Poisson distribution with 𝜆 = 𝑛𝑝.Thus, 𝜆 = 2.35

Formula:
𝑒 −2.35 2.35𝑥
𝑃𝑜𝑖(𝜆) = 𝑃(𝑋 = 𝑥) = , 𝑥 = 0,1, 2, …
𝑥!
(a) 𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2) = 0.09536 + 0.2241 + 0.2633125
=0.58276
(b) 𝑃(𝑋 > 2) = 1 − 𝑃(𝑋 ≤ 2) = 1 − {𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2)} = 0.41724

3. The probability that a person reacts to the newly manufactured vaccine against a
pandemic is 0.002. If 4000 people are treated with the vaccine, find the probability that:
a) no one will react to the vaccine
b) exactly 1 person will react to the vaccine
c) at least 3 people will react to the vaccine
d) at most 2 people will react to the vaccine

Solution:
Let 𝑋 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑒𝑜𝑝𝑙𝑒 𝑟𝑒𝑎𝑐𝑡𝑖𝑛𝑔 𝑡𝑜 𝑡ℎ𝑒 𝑣𝑎𝑐𝑐𝑖𝑛𝑒.
p= 0.002, n = 4000
Then the random variable X follows the Poisson distribution with 𝜆 = 𝑛𝑝. Thus, 𝜆 = 8

𝑒 −8 80
a) 𝑃(𝑋 = 0) = 0!
= 0.0003357
𝑒 −8 10
b) 𝑃(𝑋 = 1) = 1!
= 0.002686
c) 𝑃(𝑋 ≥ 3) = 1 − 𝑃(𝑋 < 3) = 1 − {𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2) + 𝑃(𝑋 = 3)}

= 0.9832
d) 𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2)
= 0.01376

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Practice problems

1. It has been observed that 10 drops of water trickle every 5 minutes from a leaking
pipe. What is the probability that in 5 minutes (a) exactly 6 drops of water trickle
(b) at most 2 drops of water trickle (c) at least 2 drops of water trickle?

[Hint: It is a problem pertaining to Poisson distribution since sequential occurrence of a

particular event is considered.

𝑒 −𝜆 𝜆𝑥
Poisson distribution formula: 𝑃(𝑋 = 𝑥) = 𝑥! , 𝑥 = 0,1, 2, … where the expected number
of occurrences of the event of trickling down of water droplets in 5 minutes, 𝜆 = 10

𝑒 −10 106
a. 𝑃(𝑋 = 6) = = 0.06305
6!
b. 𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2)
𝑒 −10 100
𝑃(𝑋 = 0) = 0!
= 0.000045
𝑒 −10 101
𝑃(𝑋 = 1) = 1!
= 0.00045
𝑒 −10 102
𝑃(𝑋 = 2) = 2!
= 0.0023

𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2) = 0.0028

c. 𝑃(𝑋 ≥ 2) = 1 − 𝑃(𝑋 < 2) = 1 − {𝑃(𝑋 = 0) + 𝑃(𝑋 = 1)} = 0.9995]

2. While proof reading a book, 5 misprints are found in every 3 pages. What is the
probability that any given 3 pages would have (a) exactly 5 misprints (b) at most 2
misprints (c) at least 2 misprints?

[Hint: It is a problem pertaining to Poisson distribution since sequential occurrence of a

particular event is considered.

𝑒 −𝜆 𝜆𝑥
Poisson distribution formula: 𝑃(𝑋 = 𝑥) = 𝑥! , 𝑥 = 0,1, 2, … where the expected number of
occurrences of the event of trickling down of water droplets in 5 minutes, 𝜆 = 5

𝑒 −5 55
a. 𝑃(𝑋 = 5) = 5! = 0.1755
b. 𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2)
𝑒 −5 50
𝑃(𝑋 = 0) = = 0.0067
0!
𝑒 −5 51
𝑃(𝑋 = 1) = 1!
= 0.0337
𝑒 −5 52
𝑃(𝑋 = 2) = 2!
= 0.0842

𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2) = 0.1247

c. 𝑃(𝑋 ≥ 2) = 1 − 𝑃(𝑋 < 2) = 1 − {𝑃(𝑋 = 0) + 𝑃(𝑋 = 1)} = 0.9596]

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

3. The number of people lining up at a ticket counter of a movie theatre in every half an
hour is four. What is the probability that within 30 minutes (a) at most 2 people turn up at
the counter (b) at least 2 people turn up at the counter (c) not a single person turns up at
the counter?

[Hint: It is a problem pertaining to Poisson distribution since sequential occurrence of

a particular event is considered.

𝑒 −𝜆 𝜆𝑥
Poisson distribution formula: 𝑃(𝑋 = 𝑥) = , 𝑥 = 0,1, 2, … where the expected number of
𝑥!
occurrences of the event of trickling down of water droplets in 30 minutes, 𝜆 = 4

a. 𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2)

𝑒 −5 50
𝑃(𝑋 = 0) = = 0.0067
0!
𝑒 −5 51
𝑃(𝑋 = 1) = 1!
= 0.0337
𝑒 −5 52
𝑃(𝑋 = 2) = 2!
= 0.0842

𝑃(𝑋 ≤ 2) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 1) + 𝑃(𝑋 = 2) = 0.1247

b. 𝑃(𝑋 ≥ 2) = 1 − 𝑃(𝑋 < 2) = 1 − {𝑃(𝑋 = 0) + 𝑃(𝑋 = 1)} = 0.9596
𝑒 −5 55
𝑃(𝑋 = 5) = = 0.1755
−5 0
5!
𝑒 5
c. 𝑃(𝑋 = 0) = 0! = 0.0067

4. In a manufacturing process, it is known that 1 in every 1000 of the items produced

is defective. What is the probability that a random sample of 8000 will yield fewer than
4 defective items?

[Hint: Sample strength =8000. One out of every 1000 items are known to be defective. So,
out of 8000 items, 8 are supposedly defective. Thus, 𝜆 = 8.
Probability that fewer than 4 defective items would be yielded is
𝑃(𝑋 < 4) = 𝑃(𝑋 = 0) + 𝑃(𝑋 = 2) + 𝑃(𝑋 = 3) ]

3. If the random variable X denotes the number of typos (typing errors) on a printed
page with a mean of 3 typos per page. (a) What is the probability that a randomly
selected page has 4 typos? (b) What is the probability that three randomly selected
pages have more than 8 typos?
[Hint:
(a) 𝜆 = 3 . Compute 𝑃(𝑋 = 4)
(b) 𝜆 = 3 . Compute 𝑃(𝑋 ≥ 8) ]

Normal and Standard Normal distributions

The most important continuous probability distribution in statistics is the normal distribution.
Its graph, called the normal curve, is the bell-shaped curve, which approximately describes
many phenomena that occur in nature, industry, and research. In addition, errors in scientific
measurements are extremely well approximated by a normal distribution.

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Normal Distribution

The probability density function of a normal random variable X with mean 𝜇 and variance 𝜎 2 is
defined as
1 1 𝑥−𝜇 2
− ( )
𝑓(𝑥) = 𝑁(𝜇, 𝜎 2 ) = 𝑒 2 𝜎 , −∞ < 𝑥 < ∞
𝜎√2𝜋

Normal Distribution Curve

Properties of the Normal distribution

1. The mean and variance of the normal distribution 𝑁(𝜇, 𝜎 2 ) are 𝜇 and 𝜎 2 respectively.
Hence, the standard deviation is 𝜎.
2. The mean, mode and median are all equal.
3. The normal curve is symmetric about the vertical axis through the mean 𝑥 = 𝜇.
4. Once 𝜇 and 𝜎 are specified, the normal curve is completely determined.
5. The normal curve approaches the horizontal axis (that is, the x axis) asymptotically as we
proceed in either direction away from the mean.
∞
6. Since ∫−∞ 𝑓(𝑥) 𝑑𝑥 = 1 for any probability density function 𝑓(𝑥), it follows that the area
under a probability curve must be equal to 1. Thus, the total area under the normal curve
and above the horizontal axis is equal to 1. Therefore ,
∞
𝐴𝑟𝑒𝑎 𝑢𝑛𝑑𝑒𝑟 𝑡ℎ𝑒 𝑛𝑜𝑟𝑚𝑎𝑙 𝑐𝑢𝑟𝑣𝑒 = 𝑃(−∞ ≤ 𝑋 ≤ ∞) = ∫−∞ 𝑓(𝑥) 𝑑𝑥 = 1

7. Also, since the normal curve is symmetrical about the mean 𝑥 = 𝜇, we have
𝜇 ∞
1
∫ 𝑓(𝑥) 𝑑𝑥 = = ∫ 𝑓(𝑥) 𝑑𝑥
2
−∞ 𝜇

𝑏
8. Further, 𝑃(𝑎 ≤ 𝑋 ≤ 𝑏) = ∫𝑎 𝑓(𝑥) 𝑑𝑥
9. The normal curve is bell-shaped, where most of the area of the curve is concentrated
around the mean, with rapidly decaying tails.

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Remarks:

The difficulty encountered in evaluating integrals of normal density functions necessitates

transforming all the observations of any normal random variable X into a new set of observations
of a (standard) normal random variable Z with mean 0 and variance 1 (and standard deviation is
1).

Standard Normal Distribution

The distribution of a normal random variable with mean 0 and variance 1 is called a standard
normal distribution.

A normal distribution with mean  and standard deviation  can be converted into a standard
𝑋−𝜇
normal distribution (with mean 0 and standard deviation 1) by using the transformation 𝑧 = 𝜎

Under this transformation, the probability density function of a standard normal random variable
Z (with mean 0 and standard deviation 1) reduces to

1 𝑧2
𝑓(𝑥) = 𝑁(𝜇, 𝜎 2 ) = 𝑒 − 2 , −∞ < 𝑥 < ∞
√2𝜋

Curve of Standard Normal Probability Distribution

Properties of standard normal distribution

1. The mean and variance of the standard normal distribution 𝑁(0,1) are 0 and 1
respectively.
2. The mean, mode and median are all equal.
3. The normal curve is symmetric about the vertical axis through the mean 𝑧 = 0.
4. The normal curve approaches the horizontal axis (that is, the z axis) asymptotically as we
proceed in either direction away from the mean.
∞
5. Since ∫−∞ 𝑓(𝑧) 𝑑𝑥 = 1 , it follows that the area under a probability curve must be equal
to 1. Thus, the total area under the normal curve and above the horizontal axis is equal to
1. Therefore

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

∞
𝐴𝑟𝑒𝑎 𝑢𝑛𝑑𝑒𝑟 𝑡ℎ𝑒 𝑛𝑜𝑟𝑚𝑎𝑙 𝑐𝑢𝑟𝑣𝑒 = 𝑃(−∞ ≤ 𝑍 ≤ ∞) = ∫−∞ 𝑓(𝑧) 𝑑𝑧 = 1
6. Also, since the normal curve is symmetrical about the mean 𝑧 = 0, we have
0 ∞
1
∫ 𝑓(𝑧) 𝑑𝑧 = = ∫ 𝑓(𝑧) 𝑑𝑧
2
−∞ 0
7. The standard normal curve is bell-shaped.
𝑥 𝑧
8. Further, 𝑃(𝑥1 ≤ 𝑋 ≤ 𝑥2 ) = ∫𝑥 2 𝑓(𝑥) 𝑑𝑥 = ∫𝑧 2 𝑓(𝑧) 𝑑𝑧, where 𝑋~𝑁(𝜇, 𝜎 2 ), 𝑍~𝑁(0,1),
1 1
𝑥1 −𝜇 𝑥2 −𝜇
𝑧1 = 𝜎
, 𝑧2 = 𝜎
Remarks:

1. The areas under the standard normal curve corresponding to the probability 𝑃(𝑍 ≤ 𝑧) for
values of z ranging from 0 to 3.49 are given in the standard Z distribution table for quick
reference.
2. Key formulae for ready reference:
𝑎−𝜇
(i) 𝑃(𝑋 ≤ 𝑎) = 𝑃 (𝑍 ≤ )
𝜎
𝑎−𝜇
(ii) 𝑃(𝑋 ≥ 𝑎) = 𝑃 (𝑍 ≥ 𝜎
)
𝑎−𝜇 𝑏−𝜇 𝑏−𝜇 𝑎−𝜇
(iii) 𝑃(𝑎 ≤ 𝑋 ≤ 𝑏) = 𝑃( 𝜎 ≤
𝑍≤ 𝜎
) = 𝑃 (𝑍 ≤ 𝜎
)− 𝑃 (𝑍 ≤ 𝜎
)
(iv) 𝑃(𝑋 ≤ −𝑎) = 1 − 𝑃(𝑋 < 𝑎)
(v) 𝑃(𝑋 ≥ −𝑎) = 𝑃(𝑋 ≤ 𝑎)

Examples

1. Given that X has a normal distribution with mean 300 units and variance 2500 units, find
the probability that X assumes a value greater than 362.

Solution:
𝑋−𝜇
Let, Z be the corresponding standard normal variable with 𝑍 = .
𝜎
362−300
𝑃(𝑋 > 362) = 𝑃(𝑍 > 50
) = 𝑃(𝑍 > 1.24) = 1 − 𝑃(𝑍 ≤ 1.24) = 1 − 0.8925 = 0.1075

2. The length of a species of fish is normally distributed with mean of 5.3 cm and standard
deviation of 2.5. A fish is selected at random, what is the probability that its length is
(a) less than 4.5 cm
(b) greater than 6.4 cm
(c) between 3.6 cm to 5.9 years.
(Given that 𝑃(𝑍 < 0.32) = 0.62552, 𝑃(𝑍 ≤ 0.44) = 0.67003, 𝑃(𝑍 ≤ 0.68) = 0.75175,
𝑃(𝑍 < 0.24) = 0.59483)

Solution:

Let, X be the random variable representing “the lifetime of an electric motor”.

It is given that mean of 𝑋, 𝜇 = 5.3 cm and standard deviation of 𝑋, 𝜎 = 2.5
𝑋−𝜇
Let, Z be the corresponding standard normal variable with 𝑍 =
𝜎
The probability that the motor survives for
a. Less than 4.5cm is given by

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

4.5−5.3
𝑃(𝑋 ≤ 4.5) = 𝑃 (𝑍 ≤ )
= 𝑃(𝑍 ≤ − − 0.32) = 1 − 𝑃(𝑍 < 0.32) = 1 − 0.62552
2.5
= 0.37448
b. Greater than 6.4 cm is given by
6.4 − 5.3
𝑃(𝑋 ≥ 6.4) = 𝑃 (𝑍 ≥ ) = 𝑃(𝑍 ≥ 0.44) = 1 − 𝑃(𝑍 ≤ 0.44) = 1 − 0.67003
2.5
=0.32997
c. Between 3.6 to 5.9 years is given by
3.6 − 5.3 5.9 − 5.3
𝑃(3.6 < 𝑋 < 5.9) = 𝑃 ( <𝑍< ) = 𝑃(−0.68 < 𝑍 < 0.24)
2.5 2.5
= 𝑃(𝑍 < 0.24) − 𝑃(𝑍 < −0.68)
Now, 𝑃(𝑍 < −0.68) = 1 − 𝑃(𝑍 ≤ 0.68) = 1 − 0.75175 = 0.24825

𝑃(3 < 𝑋 < 7) = 𝑃(𝑍 < 0.24) − 𝑃(𝑍 < −0.68) = 0.59483 − 0.24825 = 0.34658]

Practice problems

1. The average monthly sales of ‘Reliable Computers’ are 2500 units with a standard
deviation of 100 units. The sales are found to be normally distributed over months.
What are the chances that the sales during a particular month will be
(a) at most 2400 units
(b) at least 2400 units
(c) between 2450 to 2550 units
(Given that 𝑃(𝑍 ≤ 0.5) = 0.6915, 𝑃(𝑍 ≤ 1) = 0.8413).

[Hint: Let, X be the random variable representing “the monthly sales of Reliable Computers”.
It is given that mean of 𝑋, 𝜇 = 2500 and standard deviation of 𝑋, 𝜎 = 100
𝑋−𝜇
Let, Z be the corresponding standard normal variable with 𝑍 =
𝜎
The probability that the sales during a particular month will be
d. At most 2400 units is given by
2400 − 2500
𝑃(𝑋 ≤ 2400) = 𝑃 (𝑍 ≤ ) = 𝑃(𝑍 ≤ −1) = 1 − 𝑃(𝑍 < 1) = 1 − 0.8413 = 0.1587
100
e. At least 2400 units is given by
2400 − 2500
𝑃(𝑋 ≥ 2400) = 𝑃 (𝑍 ≥ ) = 𝑃(𝑍 ≥ −1) = 𝑃(𝑍 ≤ 1) = 0.8413
100
f. Between 2000 to 3000 units is given by
2450 − 2500 2550 − 2500
𝑃(2000 < 𝑋 < 3000) = 𝑃 ( <𝑍< ) = 𝑃(−0.5 < 𝑍 < 0.5)
100 100
= 𝑃(𝑍 < 0.5) − 𝑃(𝑍 < −0.5)
Now, 𝑃(𝑍 < −0.5) = 1 − 𝑃(𝑍 ≤ 0.5) = 1 − 0.6915 = 0.3085
Therefore,

𝑃(3 < 𝑋 < 7) = 𝑃(𝑍 < 0.5) − 𝑃(𝑍 < −0.5) = 0.6915 − 0.3085 = 0.383]

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

2. Salaries of employees of a certain organization are normally distributed with a mean of 7 LPA
and standard deviation of 3 LPA. What is the probability that, for a randomly selected employee
of this organization, the salary would be
(a) at least 5 LPA
(b) at most 5 LPA
(c) between 6 and 8 LPA
(Given that 𝑃(𝑍 ≤ 0.33) = 0.62930, 𝑃(𝑍 ≤ 0.67) = 0.74857).

[Hint: Let, X be the random variable representing “the salary of an employee of a certain
organization”.
It is given that mean of 𝑋, 𝜇 = 7 and standard deviation of 𝑋, 𝜎 = 3
𝑋−𝜇
Let, Z be the corresponding standard normal variable with 𝑍 = 𝜎
The probability that the salary of a randomly selected employee would be
a. At least 5 LPA is given by
5−7
𝑃(𝑋 ≥ 5) = 𝑃 (𝑍 ≥ ) = 𝑃(𝑍 ≥ −0.67) = 𝑃(𝑍 ≤ 0.67) = 0.74857
3
b. At most 5LPA is given by
5−7
𝑃(𝑋 ≤ 5) = 𝑃 (𝑍 ≤ ) = 𝑃(𝑍 ≤ −0.67) = 1 − 𝑃(𝑍 < 0.67) = 1 − 0.74857 = 0.25143
3

c. Between 6 and 8 LPA is given by

6−7 8−7
𝑃(6 < 𝑋 < 8) = 𝑃 ( <𝑍< ) = 𝑃(−0.33 < 𝑍 < 0.33)
3 3
= 𝑃(𝑍 < 0.33) − 𝑃(𝑍 < −0.33)
Now, 𝑃(𝑍 < −0.33) = 1 − 𝑃(𝑍 ≤ 0.33) = 1 − 0.62930 = 0.3707

Therefore,

𝑃(6 < 𝑋 < 8) = 𝑃(𝑍 < 0.33) − 𝑃(𝑍 < −0.33) = 0.62930 − 0.3707 = 0.2586]

2. Scores on the GMAT are normally distributed with a mean of 525 and standard deviation
of 10. What is the probability that an individual scores
(a) at least 500 on the GMAT
(b) at most 500 on the GMAT
(c) between 522 and 528 on the GMAT.
(Given that 𝑃(𝑍 ≤ 2.5) = 0.99479, 𝑃(𝑍 ≤ 0.3) = 0.99865).

[Hint: Let, X be the random variable representing “the scores on the GMAT”.
It is given that mean of 𝑋, 𝜇 = 525 and standard deviation of 𝑋, 𝜎 = 10
𝑋−𝜇
Let, Z be the corresponding standard normal variable with 𝑍 = 𝜎
The probability that an individual scores
a. At least 500 is given by
500 − 525
𝑃(𝑋 ≥ 500) = 𝑃 (𝑍 ≥ ) = 𝑃(𝑍 ≥ −2.5) = 𝑃(𝑍 ≤ 2.5) = 0.99479
10
b. At most 500 is given by
500 − 525
𝑃(𝑋 ≤ 500) = 𝑃 (𝑍 ≤ ) = 𝑃(𝑍 ≤ −2.5) = 1 − 𝑃(𝑍 < 2.5) = 1 − 0.99479 = 0.00521
10
c. Between 522 and 528 is given by

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

522 − 525 528 − 525

𝑃(522 < 𝑋 < 528) = 𝑃 ( <𝑍< ) = 𝑃(−0.3 < 𝑍 < 0.3)
10 10
= 𝑃(𝑍 < 0.3) − 𝑃(𝑍 < −0.3)
Now, 𝑃(𝑍 < −0.3) = 1 − 𝑃(𝑍 ≤ 0.3) = 1 − 0.99865 = 0.00135

Therefore,
𝑃(522 < 𝑋 < 528) = 𝑃(𝑍 < 0.3) − 𝑃(𝑍 < −0.3) = 0.99865 − 0.00135 = 0.9973]

3. Given a random variable X having a normal distribution with mean 50 units and standard
deviation of 10 units, find the probability that X assumes a value between 45 and 62.
𝑋−𝜇
[Hint: Let, Z be the corresponding standard normal variable with 𝑍 = 𝜎
. Then,
45−50 62−50
𝑃(45 ≤ 𝑋 ≤ 62) = 𝑃 ( 10 ≤𝑍≤ 10
) = 𝑃(−0.5 ≤ 𝑍 ≤ 1.2) = 𝑃(𝑍 ≤ 1.2) − 𝑃(𝑍 ≤ −0.5) =
0.5764]

4.A certain type of storage battery lasts, on average, 3 years with a standard deviation of
0.5 year. Assuming that battery life is normally distributed, find the probability that a
given battery will last less than 2.3 years.
4.
[Hint: Let X be the random variable representing “the battery life”. It is given that 𝜇 = 3 and
𝜎 = 0.5. Probability that a given battery will last less than 2.3 years is
𝑃(𝑋 < 2.3) = 𝑃(𝑍 < −1.4)]

5. An electrical firm manufactures light bulbs that have a life, before burn-out, that is
normally distributed with mean equal to 800 hours and a standard deviation of 40
hours. Find the probability that a bulb burns between 778 and 834 hours.

[Hint: Let X be the random variable representing “the light bulb life”.
It is given that 𝜇 = 800 and 𝜎 = 40. Probability that a bulb burns between 778 and 834 hours is
𝑃(778 ≤ 𝑋 ≤ 834) = 𝑃(−0.55 ≤ 𝑍 ≤ 0.85) = 0.5111]

Exponential Distribution:
In Probability theory and statistics, the exponential distribution is a continuous probability
distribution that often concerns the amount of time until some specific event happens. It is a
process in which events happen continuously and independently at a constant average rate. The
exponential distribution has the key property of being memoryless. The exponential random
variable can be either more small values or fewer larger variables. For example, the amount of
money spent by the customer on one trip to the supermarket follows an exponential distribution.

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Example 1:

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Example 2:

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

 APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

Example 3:

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)

APPLIED STATISTICS (MAT1003) MODULE 3 REFERENCE MATERIALS
(EVEN SEMESTER AY 2022-2023)

APPLIED STATISTICS (MAT1003) | Module 3 Reference Materials (Even Sem AY 2022-23)