1.

Define standard normal variable and write its probability density function.

Answer»

If X is normal variable with mean = µ and standard deviation = σ, then the random variable Z = \(\frac{X−μ}σ\) is called the standard normal variable. It is free from units of measurement.

The probability density function of Z is as follows :

f(z) = \(\frac{1}{\sqrt{2π}}e^{-\frac{1}{2}z^2}\), – ∞ < z < ∞



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