Obtaining uniform random numbers as instructed at the beginning of the Problems section, use the inverse transformation method and the table of the normal distribution given in Appendix 5 (with linear interpolation between values in the table) to generate 10 random observations (to three decimal pl...

We can use r directly instead of 1 r since ...

Obtaining uniform random numbers as instructed at the beginning of the Problems section, use the inverse transformation

Question:

Obtaining uniform random numbers as instructed at the beginning of the Problems section, use the inverse transformation method and the table of the normal given in Appendix 5 (with linear interpolation between values in the table) to generate 10 random observations (to three decimal places) from a normal with mean = 1 and variance = 4. Then calculate the sample average of these random observations.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...