Question: If you add several normally distributed random numbers, the result is normally distributed, where the mean of the sum is the sum of the individual
This is a difficult result to prove mathematically, but it is easy to demonstrate with simulation. To do so, run a simulation where you add three normally distributed random numbers, each with mean 100 and standard deviation 10. Your single output variable should be the sum of these three numbers. Verify with @RISK that the distribution of this output is approximately normal with mean 300 and variance 300.
Step by Step Solution
3.46 Rating (182 Votes )
There are 3 Steps involved in it
tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style0 msonumberformatGene... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
415-M-S-S-M (195).xlsx
300 KBs Excel File
