Question

We can interpret the area under the normal curve for an interval as (1) the probability that a randomly selected observation will lie in the interval or (2) the proportion of observations that lie in the interval. Which of these two interpretations do you prefer, and why? Explain.

Answer 1

The area represented by normal distribution for an interval means that the probability that a randomly selected observation will lie in the interval.

The first option is correct.

It is correct since the standard normal curve represents the probabilities of occurance of the event and not the proportion.