Microsoft® Office Excel® 2007: Data Analysis and Business Modeling, Second Edition

Chapter 58. 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?

What are the properties of the normal random variable?

• In Chapter 55, you learned that continuous random variables can be used to model quantities such as the following:

  • Price of Microsoft stock one 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

  • Person’s IQ

• Remember that if a discrete random variable (such as sales of blazers during 2006) can assume many possible values, ...