If you add several normally distributed random numbers, the result is normally distributed, where the mean of

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If you add several normally distributed random numbers, the result is normally distributed, where the mean of the sum is the sum of the individual means, and the variance of the sum is the sum of the individual variances.

(Remember that variance is the square of standard deviation.) This is a difficult result to prove mathematically, but it is easy to demonstrate with simulation. To do so, run a simulation where you add three normally distributed random numbers, each with mean 100 and standard deviation

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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