Chapter 5: Problem 21
Let \(X\) denote the mean of a random sample of size 128 from a gamma
distribution with \(\alpha=2\) and \(\beta=4\). Approximate
\(\operatorname{Pr}(7
Short Answer
Expert verified
The approximate probability that \(X\) lies between 7 and 9 is 0.6827
Step by step solution
01
Calculate the mean and standard deviation for the normal distribution
According to the Central Limit Theorem, the mean \(\mu\) of a normal distribution where the sample size is large and derived from a gamma distribution is given by \(\alpha*\beta\) and the standard deviation (\(\sigma\)) is given by \(\sqrt{\frac{\alpha*\beta^2}{n}}\). Here, \(\alpha = 2\), \(\beta = 4\), and \(n = 128\). Plugging these values into the formulas, we get \(\mu = 2 * 4 = 8\) and \(\sigma = \sqrt{\frac{2 * 4^2}{128}} = 1\).
02
Standardize the range limits
To calculate the probability, we first standardize the range values by subtracting the mean and dividing by the standard deviation (i.e. calculate the z-score). Let's calculate the standardized values for 7 and 9 using \(Z = \frac{x - \mu}{\sigma}\). For \(x = 7\), we get \(Z_1 = \frac{7 - 8}{1} = -1\) and for \(x = 9\), we get \(Z_2 = \frac{9 - 8}{1} = 1\)
03
Find the probability
Now use the standard normal table (or use a function in a software package) to find the probabilities associated with these z-scores. Recall that the area under the standard normal curve between -1 and 1 is approximately 0.6827, so \(\operatorname{Pr}(7<X<9) = 0.6827\)
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Key Concepts
These are the key concepts you need to understand to accurately answer the question.
Gamma Distribution
The gamma distribution is a two-parameter family of continuous probability distributions. It is defined by a shape parameter \(\alpha\) and a rate parameter \(\beta\). The formula looks a little complicated, but its essence is in its flexibility in modeling distributions of various shapes. In the context of the exercise, the gamma distribution has \(\alpha = 2\) and \(\beta = 4\). This means that the distribution of our random sample with size 128 has:
- a mean (expected value) of \(\alpha \times \beta = 8\)
- a variance of \(\alpha \times \beta^2 = 32\)
Standard Normal Distribution
The standard normal distribution is a special case of the normal distribution. It is a continuous probability distribution with a mean of 0 and a standard deviation of 1. To put it simply, it's the bell curve you might think of when picturing a normal distribution. In this exercise, the Central Limit Theorem allows the mean and variance from our gamma (non-normal) distribution to approximate a normal distribution due to the sample size of 128, which is quite large.
A standard normal distribution makes it easier to calculate probabilities because:
A standard normal distribution makes it easier to calculate probabilities because:
- it is symmetric around the center (mean value)
- and its total area (under the curve) sums to 1
Z-scores
Z-scores are a statistical measurement that describe a value's relation to the mean of a group of values. They help to determine where a data point lies in relation to the rest of the data set using the standard deviation. In formula terms, a z-score is calculated using:
In the given exercise, when we wanted to find the probability that \(7 < X < 9\), we first translated these values into z-scores:
- \(Z = \frac{x - \mu}{\sigma}\)
In the given exercise, when we wanted to find the probability that \(7 < X < 9\), we first translated these values into z-scores:
- For \(x = 7: Z_1 = -1\)
- For \(x = 9: Z_2 = 1\)