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Please answer both 1 & 2. 1. Use Excel to generate 100 observations from the standard...

Please answer both 1 & 2.

1. Use Excel to generate 100 observations from the standard Normal distribution.

a.Make a histogram of these observations. How does the shape of this histogram compare with a Normal density curve?

2. Use Excel to generate 100 Normally distributed random values (that is 100 outcomes of a Normally distributed random variable with mean 10 and standard deviation of 5).

a. Make a histogram for your data. How does the shape of this histogram compare with a normal density curve?

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Answer #1

1. a) Use Data Analysis tool pack in Excel,

Random Number Generation Number of Variables: Number of Random Numbers 100 Distribution: Parameters OK Cancel Normal Help Mean 0 Standard deviation Random Seed: Output options O Output Range: ONew Worksheet Ply: ONew Workbook SA$3

1 We generate 100 random Numbers from the standard normal distribution 2 Rand. No 32.93876 4 1.153599 5 0.32127 6 0.662415 7 1.011629 8 1.741437 9 0.613468 10 0.096961 11 0.987923 12 2.662709 13 1.01074 14 1.099911 15 -0.21982 16 0.083672 17-2.22619 18 1.11959 19 -0.34488 20 0.288808 21 -0.32974 22 -1.77963 23 -0.30023 24 -0.42489 25 1.664203 I Sheet1Sheet2 Sheet3

b) Histogram of the data

Chart 3 1 We generate 100 random Numbers from the standard normal distribution 2 Rand. No 3 2.93876 4 1.153599 5 0.32127 6 0.662415 7 1.011629 8 1.741437 9 0.613468 10 0.096961 11 0.987923 12 2.662709 13 1.01074 14 1.099911 15 -0.21982 16 0.083672 17 -2.22619 18 1.11959 Frequendc 2 Histogram of ND (0,1) 2 13 37 35 30 25 20 15 2 100 Seriesi 100

The shape of the distribution is bell shaped

2 a). We generate 100 random numbers from Normal distribution with mean 10 and SD 5

Random Number Generation Number of Variables: Number of Random Numbers 100 Distribution: Parameters OK Normal Help Mean Standard deviation5 10 Random Seed: Output options O Qutput Range: ONew Worksheet Ply: SA$3 New Workbook

b)

Chart 4 1 We generate 100 random Numbers from the standard normal distribution 2 Rand. No 34.6938 UL Frequendc Histogram N(10,5) 415.76799 5 8.393668 6 13.31207 7 15.05814 8 18.70718 9 13.06734 10 10.48481 11 14.93961 12 23.31355 13 4.946324 14 15.49956 15 8.900915 16 10.41836 17 -1.13094 18 4.402026 13 37 35 10 15 25 20 15 More

The shape of the distribution is bell shaped

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