Statistics for Management Decisions

MG913
Lecture 5
Normal Distribution
By
Dr. Mahmoud H. Moussa
Lecturer of Mathematical Statistics
Cairo University
Normal Distribution
• The commonest and the most useful continuous distribution.
• A symmetrical probability distribution where most results are located
in the middle and few are spread on both sides.
• Takes the bell shape.
• Can entirely be described by its mean and standard deviation.
Normal Distribution
➢Can be found practically every where:
• In engineering and industrial processes.
• In social and human sciences.
• In nature.
➢Many data sets follow approximately the normal distribution
Examples for datasets that follow normal
distribution
• The body temperature for healthy humans.
• The heights and weights.
• The quality control test results.
• The thickness and dimensions of a products.
Why Normal Distribution:
• Used to illustrate the shape and variability of the data.
• Used to estimate future process performance.
• Normality of the variables under the study is an
important to making statistical analysis.
Shapes of Normal Curve:
Characteristics of Normal Curve:
1. A normal distribution curve is bell-shaped.
2. The mean, median, and mode are equal and are located at the
center of the distribution.
3. A normal distribution curve is unimodal (i.e., it has only one mode).
4. The curve is symmetric about the mean, which is equivalent to
saying that its shape is the same on both sides of a vertical line
passing through the center.
5. The curve is continuous; that is, there are no gaps or holes.
6. The curve never touches the x axis. Theoretically, no matter how far
in either direction the curve extends, it never meets the x axis—but
it gets increasingly closer.
Characteristics of Normal Curve:
7. The total area under a normal distribution curve is equal to
1.00, or 100%.
8. The area under the part of a normal curve that lies within 1
standard deviation of the mean is approximately 0.68, or
68%; within 2 standard deviations, about 0.95, or 95%; and
within 3 standard deviations, about 0.997, or 99.7%.
The Standard Normal Distribution
Example 1:

𝑃 𝑍 < 2.06 = 0.9803

See the table

next slide
Example 2:
𝑃 𝑍 ≻ −1.19
= 1 − 𝑃 𝑍 < −1.19
= 1 − 0.1170

See the table

next slide
Example 3:

𝑃 −1.37 < 𝑍 < 1.68 =

= 𝑃 𝑍 < 1.68 − 𝑃 𝑍 < −1.37
= 0.9535 − 0.0853 = 0.8682
Example 4:

Here z is unknown
𝑃 𝑍 < 𝑧 = 0.5 + 𝑃 0 < 𝑍 < 𝑧
= 0.5 + 0.2123 = 0.7123

𝑃 𝑍 < 𝑧 = 0.7123
Since this number (0.7123) is greater
than 0.5 then we search in table of
positive Z values

See the table

next slide
Then z=0.56
Example 5 (Application to Normal Distribution)

Assume 𝑋 is the amount of newspaper

27−28 31−28
a. 𝑃 27 < 𝑋 < 31 = 𝑃 <𝑍<
2 2
= 𝑃 −0.5 < 𝑍 < 1.5 = 𝑃 𝑍 < 1.5 − 𝑃 𝑍 < −0.5
= 0.9332 - 0.3085 = 0.6247
30.2−28
b. 𝑃 𝑋 > 30.2 = 𝑃 𝑍 > = 𝑃 𝑍 > 1.1
2
= 1 − 𝑃 𝑍 < 1.1 = 1 − 0.8643 = 0.1357.
Example 6

Assume X= number of cups per day

1 − 1.64
𝑃 𝑋<1 =𝑃 𝑍< = 𝑃 𝑍 < −2.67
0.24
= 0.0038
To find how many people drank less than 1 cup of
coffee, multiply the sample size 500 by 0.0038 to get
1.9. Since we are asking about people, round the answer
to 2 people. Hence, approximately 2 people will drink
less than 1 cup of coffee a day.
Example 7: Finding Data Values Given Specific Probabilities

Assume T=test score

𝑃(𝑇 > 𝑥) = 0.1
Then 𝑃 𝑇 ≤ 𝑥 = 0.9
Transform to Z
𝑥 − 200
𝑃 𝑍≤ = 0.9
20
Search in table reversing
See next slide
 𝑥−200
Then = 1.28
20
𝑥 − 200 = 1.28 ∗ 20
= 25.6
𝑥 = 25.6 + 200
= 225.6

Then the lowest

possible score to qualify
is 225.6 approximately
226
Source: https://www.slideshare.net/dsaadeddin/normal-distribution-77299816/3
Source: https://www.slideshare.net/dsaadeddin/normal-distribution-77299816/3
Source: https://www.slideshare.net/dsaadeddin/normal-distribution-77299816/3
Source: https://www.slideshare.net/dsaadeddin/normal-distribution-77299816/3
 Probability Plot
Graph for testing
Normality

Source: https://www.slideshare.net/dsaadeddin/normal-distribution-77299816/3
Source: https://www.slideshare.net/dsaadeddin/normal-distribution-77299816/3
Source: https://www.slideshare.net/dsaadeddin/normal-distribution-77299816/3