Microsoft® Excel Data Analysis and Business Modeling

Chapter 56. The Normal Random Variable

• What are the properties of the normal random variable?

• How do I use Excel to find probabilities for the normal random variable?

• Can I use Excel to find percentiles for normal random variables?

• Why is the normal random variable appropriate in many real-world situations?

In Chapter 53, you learned that continuous random variables can be used to model quantities such as the following:

• Price of Microsoft stock a year from now

• Market share for a new product

• Market size for a new product

• Cost of developing a new product

• Newborn baby’s weight

• A person’s IQ

Remember that if a discrete random variable (such as sales of blazers during 2006) can assume many possible values, we can approximate the value by using a continuous ...