When I worked for a national financial institution, the bank was interested in exploring a teen outreach program. Bankers would advertise to local high schools and offer "financial fitness" classes, with information about how to manage your finances. During the courses, bankers handed out plenty of bank-branded swag. The program cost a fair amount of money but the bank expected that within 3 years, these classes would result in increased number of bank accounts at the hosting bank branches. After 3 years, all the data was collected and an appropriate t-test was performed to test accounts. the branches that offered the program had a higher number of new bank Describe the possible Type I and Type Il errors in this context, and the consequences of those errors.
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!
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