Donations Organizers of a televised fundraiser knowfrom past experience that most people donate smallamounts ($10–$25), some donate larger amounts ($50–$100), and a few people make very generous donations of$250, $500, or more. Historically, pledges average about$32 with a standard deviation of $54.a) If 120 people call in pledges, what are the mean andstandard deviation of the total amount raised?b) What assumption did you make in answering thisquestion?
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!
Donations Organizers of a televised fundraiser know
from past experience that most people donate small
amounts ($10–$25), some donate larger amounts ($50–
$100), and a few people make very generous donations of
$250, $500, or more. Historically, pledges average about
$32 with a standard deviation of $54.
a) If 120 people call in pledges, what are the mean and
standard deviation of the total amount raised?
b) What assumption did you make in answering this
question?
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