The graph of the probability distribution of a normally distributed random variable with a mean of 20 and standard deviation of 3 is shown in Figure. The Excel function = NORMINV(Rand( ),20,3) also returns randomly generated observations from this distribution.

a. Use Excel’s NORMINV( ) function to generate 100 sample values from this distribution.

b. Produce a histogram of the 100 sample values that you generated. Does your histogram look like the graph for this distribution in Figure?

c. Repeat this experiment, with 1,000 sample values.

d. Produce a histogram for the 1,000 sample values you generated. Does the histogram now more closely resemble the graph in Figure for this distribution?

e. Why does your second histogram look more “normal” than the firstone?

Transcribed Image Text:

dare Nore Normal Distribution Normal Distnibution 200 500 1000 21 0 20 200 Nane Triangular Distrihution Triangular Dist ribution 3 .00 5.00 500 7.00 400 Nore GammaDistribution Beta Distnibution 000 000012000O00 00 300 30000 Locabon 000