Measure: Introduction to the Standard Normal

Distribution

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 Measure: Introduction to the Standard Normal
Distribution

Overview: Intro to the Standard Normal Distribution

In this section probability, probability curves and standard distributions will
be explored.

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 Measure: Introduction to the Standard Normal
Distribution

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 Measure: Introduction to the Standard Normal
Distribution

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Distribution

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 Measure: Introduction to the Standard Normal
Distribution

Value Combinations The Normal Probability Plot is

another way besides the
2 1
histogram to plot data and look for
3 2 normality. Normal data, when
plotted with the data value on the
4 3
X-axis and specially spaced
5 4 percentiles of the normal
distribution on the Y-axis, will fall
6 5
on a straight line.
7 6
8 5 The shape of a dataset can be
9 4 determined by examining a
histogram or, if testing the
10 3 distribution for normality, using a
11 2 “Normal Probability Plot.” There
are many different shapes a
12 1 dataset may assume.

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 Measure: Introduction to the Standard Normal
Distribution

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 Measure: Introduction to the Standard Normal
Distribution

The Normal Distribution

The Normal distribution is an example of a continuous random variable

distribution. There are many different Normal distributions. A Normal distribution
can be identified by specifying two numbers: the mean and the variance or
standard deviation.
If X is a normal random variable with mean  and variance 2, then the density
function y is given by a normal distribution which is sometimes called a bell
curve. It is symmetric.
The total area underneath a distribution curve equals a probability of one. The
area between two different values is the probability that the observed value will
fall between those two values.

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 Measure: Introduction to the Standard Normal
Distribution

Standard Normal Distribution

Standard Normal Distribution:

Mean = 0
Standard Deviation = 1
Z = Number of standard deviations
Determine Z value from Z-table:
Other options: use Excel or MINITAB®
Be aware of the different Z-tables

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 Measure: Introduction to the Standard Normal
Distribution

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 Measure: Introduction to the Standard Normal
Distribution

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Distribution

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Distribution

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Distribution

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 Measure: Introduction to the Standard Normal
Distribution
FILE: MEASURE-SUPPLIER PROBLEM.MTW

 EXERCISE: The Supplier Problem

The Problem Statement: The ACME Company pays its suppliers on average in 31.5 days.
When the process goal of paying suppliers in 30 days is not met, ACME must pay a penalty
of 5% on the invoice, costing them in excess of $600,000 per year.
The Goal: Reduce the $600,000 in future penalties by reducing the time it takes to pay
suppliers, so that 100% of all suppliers are paid on time, within 30 days every month.
1. Review the data collected by the team. Discuss the current situation and in words
describe how the process is performing.
2. Generate theories as to what you think is wrong with this process?
3. Decide what must be done to this process in order to pay all suppliers within the 30
days.
Sample Sample Sample Sample Sample Sample Average
Subgroup 1 2 3 4 5 X Range
1 35 20 45 31 28 31.8 25
2 37 40 25 33 40 35 15
3 30 40 28 36 25 31.8 15
4 25 15 30 39 31 28 24
5 25 20 32 40 37 30.8 20
6 15 22 28 32 40 27.4 25
7 37 35 30 27 38 33.4 11
8 18 25 34 21 37 27 19
9 40 19 32 27 37 31 21
10 8 17 39 40 31 27 32
11 27 32 37 40 29 33 13
12 40 37 39 37 31 36.8 9
13 29 38 36 40 30 34.6 11
14 29 37 7 40 31 28.8 33
15 25 37 42 17 24 29 25
16 40 33 27 38 34 34.4 13
17 10 27 38 40 34 29.8 30
18 40 27 38 33 39 35.4 13
19 39 40 40 25 38 36.4 15
20 40 39 35 37 30 36.2 10
21 40 38 33 32 30 34.6 10
22 30 27 32 30 11 26 21
23 8 35 38 40 29 30 32
24 40 30 17 25 29 28.2 3023Minutes
25 25 39 33 36 17 30 22

Average of X and R 31.456 19.48

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Distribution

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