Probability of Exact Expenditure: A Normal Distribution Approach with Continuity Correction

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Probability of Exact Expenditure: A Normal Distribution Approach with Continuity Correction If you are asked to calculate the probability that a randomly selected employee’s expenditure is exactly $5, what will be your answer? The probability that a randomly selected employee’s expenditure is exactly $5 is 0.121 Why? I calculated the probability below. It makes sense as the graph has minimum value at 5 . Will your answer be the same for any individual expenditure? No, this answer is just for those who are employees at a certain company with s exactly $5 expenditure . What approach would you take to calculating the likelihood of spending exactly $5.00 on a lunch purchase? I used the approach of Normal distribution with approximation to Binomial distribution as: Mean expenditure = μ = 7 Standard deviation = σ = 2 The probability of exactly $5 expenditure = ( ) 5 P X = Since normal distribution is continuous so we have to take continuity correction as:
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