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Normal/standard Distribution and Level of significance

a) What is the difference between a normal distribution and a standard normal distribution?

b) What is the purpose of using a standard normal distribution instead of the normal distribution?

c) Please cite one example of how the standard normal distribution is used, including the Z-values for your example.

d) If you are given the level of significance, how do you obtain the critical value?

e) How are z-values related to hypothesis testing?

f) Describe the five-step hypothesis testing process?

Solution Preview

a) What is the difference between a normal distribution and a standard normal distribution?

For normal distribution, there are two parameters: mean µ and standard deviation σ. If µ=0 and σ=1, the corresponding normal distribution is called a standard normal distribution.

b) What is the purpose of using a standard normal distribution instead of the normal distribution?

When you are asked to find a probability involving a random ...

Solution Summary

The solution explains the difference between normal and standard distribution and how to obtain the critical value when given a certain level of significance. The five-step hypothesis testing process is described and explains how z-values are related to hypothesis testing.

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