Workshop 5 - CRVs

Question 1

Key facts of CRVs

Answer 1

Probability that a CRV will be equal to a particular number is zero.
Probability density function conveys probability of a CRV
Area under a PDF is 1.
To find probability of said values, compute area below said values

Question 2

PDF of normal distribution characteristics

Answer 2

Symmetric
Bell shaped
Area under curve is 1
Extends to +/- infinity

Mean occurs at peak

Question 3

Stata commands

Answer 3

Display normprob(Z) gives P(Z<z)
Display 1 - normprob(Z) gives P(Z>=z)
Display invnormal(a) gives k such that P(Z<k) = a