Statistical methods for Economics - Semester 1
- Created by: Harry Owen
- Created on: 21-11-12 17:13
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u = 200 Sigma^2 (S^2) = 2500 n = 100
E(Xbar) = u. This is because: the expectation of the sample mean is the same as the population mean. Therefore E(Xbar) = 200
Std.Dev(Xbar) = RootVar(Xbar) = root(sigma^2,/n) =
Since we already have Sigma^2 = 2500 and n=100, Std.dev(Xbar) = root(2500/100) = root25 = 5
Standardizing
•So if: X~N(μ, σ2) Then:
•We can now use Normal Probability Tables to obtain probabilities. •If for example X~N(10, 36)
Then
Therefore:
Question:
Find the number z0 such that if Z~N(0,1)
a) P(Z ≥ z0) = 0.05
b) P(Z< z0)…
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