1. [Excel Question] The number of days building a new detached home follow a normaldistribution with mean of 300 days and standard deviation of 25 days. If it exceeds 350days, a late completion penalty will occur. Answer the following questions using Excel.(a) What percent of new detached homes is built in less than 290 days?Hint: use the Excel function NORM.DIST(x, mean, std dev, true)(b) Find Q1 and Q3.Hint: use the Excel function NORM.INV(probability, mean, std dev)(c) What is the probability incurring a penalty?Hint: Use the complement event and the Excel function NORM.DIST
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
1. [Excel Question] The number of days building a new detached home follow a
distribution
days, a late completion penalty will occur. Answer the following questions using Excel.
(a) What percent of new detached homes is built in less than 290 days?
Hint: use the Excel
(b) Find Q1 and Q3.
Hint: use the Excel function NORM.INV(
(c) What is the probability incurring a penalty?
Hint: Use the complement
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