Bahria University, Karachi Campus

Department of Business Studies

Course: Mathematics & Statistics for Management [QTM-535] MBA-Weekend-1A

Fall - 2021 Sunday, October 24, 2021
Course Supervisor: Ishtiaq Ahmed
Properties of Normal Probability Distribution

1. Normal Probability Distribution an important type of Continuous Probability Distribution.

2. Probability Density Function (p.d.f) of the Normal Probability Distribution as follows:
1 −1 𝑥− 𝜇 2
Pr(𝑥, 𝜇, 𝜎) = 𝑒2[ 𝜎 ]
𝜎√2𝜋
Where µ and 𝜎 are known population mean and population standard deviation respectively and x is
continuous random variable under the range (x1 < X < x2), Normal Probability Distribution contain two
parameters i.e. µ, 𝜎 and x is continuous random variables.
3. The Normal curve is a bell shape or symmetrical curve.
4. Total probability under the normal curve should be equal to 100% or 1.
5. The random variable(x) can not give actual shape of normal, symmetrical or bell shape. Therefore, random
variable(x) should be converted into the standardized random variable which is denoted by “z” and
known as z-scores. The standardized random variable or z-score give actual shape of normal curve.
6. Standardized random variable or z-score can be obtained by:
z-score = x – x or z –score = x - µ
s.d 𝜎

Where s.d is sample standard deviation and 𝜎 is population standard deviation.

7. Mean and standard deviation of z-score should be zero and one respectively.
8. The curve has a single peak; it is uni-modal curve.
9. The mean (µ) of a normally distributed population lies at the center of its normal curve.
10. The two tails of the normal curve extended indefinitely and never touch the horizontal axis.
11. Because of the symmetrical curve of the normal probability distribution, the median and mode of the
distribution are also at the center, therefore a normal curve contain same value of mean, median and mode.
Mean = Mode = Median
12. The Normal Probability Distribution as an approximation to the Binomial Probability Distribution. Therefore,
µ = np and 𝜎 2 = npq
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Page 1 of 3 Statistics & Mathematics for Management (QTM-535) Properties of Normal Probability Distribution
 Prove of Characteristics of Z-Score or Standardized Random Variable

1) 𝑍̅ = 0
2) 𝜎𝑧 = 1

Proof:

Suppose given random variable

x= 3 4 0 4 1 3 6 1 5

To be proved above condition of Characteristics of Z-Score, we should follow following steps

a) 𝐶𝑜𝑚𝑝𝑢𝑡𝑒 𝜇 = 3 and 𝜎 = 2 from above random variable (x)

𝑥−𝜇
b) Convert above random variable (x) into z-score thought z = 𝜎

X z=
𝑥−𝜇
=
𝑥−3
𝜎 2
3 0

4 0.5

0 -1.5

4 0.5

1 -1

3 0

6 1.5

1 -1

5 1

∑𝑧 0
𝑍̅ = 𝑛 = 9
= 0 Proved
𝜎𝑧 = 1

Page 2 of 3 Statistics & Mathematics for Management (QTM-535) Properties of Normal Probability Distribution
 A) Computation of Probability from Normal Probability Distribution

Given that 𝜇 = 12 and 𝜎 = 1.5 then compute i) Pr. (X ≤ 8 )

ii) Pr. (X ≥ 13)
iii) Pr. (10 ≤ X ≤ 14)
Solution
i) Pr. (X ≤ 8)
Convert random variable x into z-score
𝑥−𝜇 8−12
z = 𝜎 = 1.5 = -2.66666 ≅ -2.67
Pr.( x ≤ 8) = Pr.(z ≤ -2.67)

We will see the required probability ≤ -2.67 from z-score table

Pr. (x ≤ -2.67) = 0.0038= 0.38

ii) Pr (x ≥ 13)
𝑥−𝜇 13−12
z= 𝜎
= 1.5
= 0.67
Pr (x ≥ 13) = 1- Pr (x ≤ 0.67) = 1 - 07486 = 0.2514 = 25.14%

iii) Pr. ( 10 ≤ X ≤ 14)

𝑥−𝜇 10−12 𝑥−𝜇 14−12
z= 𝜎
= 1.5
= -1.33 , z= 𝜎
= 1.5
= 1.33 =
Pr. ( 10 ≤ X ≤ 14) = Pr(x ≤ 14) – Pr(x ≥ 10)
= Pr(z ≤ 1.33) – Pr(z ≤ -1.33)
Form z score table
= 0.9084 – 0.0918 = 81.66%
B) Computation of “x” value if probability given

x can be computed to use following transformation

x = µ + zσ

Page 3 of 3 Statistics & Mathematics for Management (QTM-535) Properties of Normal Probability Distribution