Technical recap - Normal distribution

Discussion in 'CA3' started by Little Miss Actuary, Sep 27, 2007.

  1. Hi

    I'm just reading though the technical recap on the normal distribution and I'm confused :confused: I'm looking at pages 80-83:

    It says things like if S~N(200,40) then Z=(S-200)/40~N(0,1)

    Shouldn't this be if S~N(200,40) then Z=(S-200)/(root 40)~N(0,1)
    or if S~N(200,40^2) then Z=(S-200)/40~N(0,1) ???

    It's doing this all the way through the recap so I don't think it's a typo. I've dug out my old CT3 notes and they seem to agree with my understanding. Have the rules of stats changed since I did CT3 or am I missing something really obvious??

    Please help :)
     
  2. Louisa

    Louisa Member

    I think some people write N(mu, sigma) not N(mu, sigma^2) - perhaps they've switched between CT3 and CA3? Rather confusing if so.
     
  3. Thanks Louisa, I didn't realise it was ever written like that. In one place it even says S~N(mu,sigma) so that must be it. I was less confused before I read this recap! :rolleyes:
     

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