Assignment

Name:

Naeem Sajjad

Registration ID

056

Course Name

Quantitative Business Analysis

Course Code

MGT 683

Program

(MBA 1.5)

Semester

fall

Date of Submission

25-10-2015

Question 1

Consider an experiment which consists of 2 independent coin tosses. Let the

random variable x denotes the number of heads appearing. What is the
probability of?
Probability of 1 head appearing
Probability of 2 head appearing

The four outcomes are equally likely in this case so the probability is . But in
given experiment 2 coins tosses are independent
1. Probability of 1 head appearing:
1/41/4 = 1/2
2. Probability of 1 head appearing
So it is the product of P (H) and P (H) which is:
1/2 1/2 = 1/4
The four possible outcomes can be classified in terms of the number of heads that
come up. The number could be two (Outcome 1), one (Outcomes 2 and 3) or 0
(Outcome 4).
Number of
heads
0
1
3

Probability
1/4
1/2
1/4

Question 2
Normal Distribution:
The normal distribution is one of important class of statistical distribution; this
kind of data distribution can be seen in many natural phenomenon such as height,
lengths of objects manufactured by machines, marks on test, errors in measurement
and blood pressure. All normal distributions are symmetric and have bell-shaped
density curves with a single peak. In normal distribution two quantities nee to be
specified the mean (peak of density occurs) and the standard deviation (girth of
bell curve).
The spread of a normal distribution is controlled by the standard deviation (), the
smaller the standard deviation the more concentrated the data. And the mean and
the median are the same in a normal distribution.
Characteristics and uses make difference in binomial and natural
distribution:
The following are characteristics of normal distribution:
Mean = Median= Mode
Symmetrical to the centre, no bias left or right.
50% values are less than mean and 50% are more than mean
Difference
1. Binomial distribution is very much different from normal distribution. But if
the sample size is large then shapes of histograms will be quite similar.
2. The main difference is that binomial distribution is discrete not continuous
like normal distribution. Which means that it not possible to find a data
value between any two variables in binomial distribution, but in normal
distribution we can do so.
3. Normal distribution arises in natural process such as height, sampling
process and repeated measurements of a fixed phenomenon such as orbital
movement of mars; in contrast binomial distribution arises when r.v of
interest is the count of successes in a fixed number of trials.