Appendix 3

Probability Tables

Probability tables are available at the book web site, http://research.bus.wisc.edu/RegActuaries.

**A3.1 Normal Distribution**

Recall from equation (1.1) that the probability density function is defined by

where *μ* and *σ* ^{2} are parameters that describe the curve. In this case, we write *y* ∼ *N*(*μ, σ* ^{2}). Straightforward calculations show that

and

Thus, the notation *y* ∼ *N*(*μ, σ* ^{2}) is interpreted to mean that the random variable ...

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