Normal Distribution

Normal Distribution is the most important and

most commonly used distribution in the entire field of
statistics because it provides foundation to other
statistical analysis that has been developed.
Many variables are approximately normal, e.g.,
students’ grades, IQ , weights, heights, etc.
In business, the following data are taken as normally
distributed: product specifications like sizes, weight,
volume, diameter, height, lifetime of batteries and lights,
strength of cables, etc.;
Finances like interests, return of investments, capital,
profits, loses, and the like. In the department stores, a
great majority of the apparel sizes are medium. Few are
large and small and very few are extra large and extra
small and much fewer are XXL and XXS.
µ-3 µ-2 µ- mean µ+ µ+ µ+
1 median 1 2 3
mode
 The normal distribution has an exceptional
sequence of values that when graphed, the
curve forms a special bell-shape form. The graph
of a normal distribution is called normal curve.
The shape of a normal curve depends on the
values of the mean and the standard deviation.
Different values of  and  results to different
shapes of the normal curve.
The following are the properties of normal curve.
1. The graph of the normal distribution is a bell-
shaped curve with the highest point over the
mean.
2. The curve is symmetrical about the vertical axis
through the mean.
3. The tails or ends of the curve are asymptotic (
approaches the horizontal axis but never
touches nor intersects) relative to the horizontal
axis.
4. The values of the mean, median and mode are
equal under the normal curve.
 5. The area under the normal curve is equal to one
(1) or100%.
6. The normal curve maybe divided into 3 parts,
one of each side of the vertical axis. The distance
from the mean (located at the vertical axis) to one
part of the curve to the right is equal to +1
(standard deviation) and -1 from the mean to one
part to the left.
7. Regardless of the values of the mean and
standard deviation, the area that lies within one
standard deviation from the mean is 68.3%, within
2 standard deviations from the mean is 95.5% and
within 3 standard deviation from the mean is 99.7%
 Standard Normal Distribution
The standard normal distribution is a normal
probability distribution with mean equal to zero (0)
and standard deviation equal to one(1). In any
normal distribution, each observed value (X) can be
converted to a standard normal deviate or standard
score ( or Z score) and can be solved by the
standard score formula. The Z- score measures the
number of standard deviations the corresponding X
value lies above or below the mean of each
distribution. Positive Z measures the number of
standard deviations the X value is above the mean.
Negative Z measures the number of standard
deviations the X value is below the mean.
 For Population For sample
X  XX
Z z
 s
Where:
 - population mean X - sample mean
 - population standard s – sample standard
deviation deviation
X – observed value
-3 -2 -1 0 1 2 3
Examples:
1. The mean grade of a class is 83% with a
standard deviation of 7.5%. What are the
corresponding standard scores of three
students who received grades of a) 92% b)
83% c) 75%?
Solution:
a) X = 92
XX 92  83
z   1.2
s 7.5
b) X = 83

83  83
z =0
7.5

c) X = 75
75  83
z  1.07
7.5
 2. An employee received a rating of 1.25 in
standard score. What is his corresponding score
if the mean was 125.5 with a standard deviation
of 22.75?
Solution:
Given: Z= 1.25 X = 125.5 s = 22.75
X = sz + X = ( 22.75)(1.25) + 125.5 = 153.94
 Exercise:
1. Determine the unknown variable in each of
the following
a) Z = 2.1 s = 22.5 X = 95
b) Z = 1.4 s = 2.75 X = 28.6
c) Z = -0.94 X = 300.5 X = 295
 Area under the Normal Curve
The area under the normal curve represents
the probability that the observed value, X, takes on
any value. The following are the different ways by
which the observed X takes on any value.
1. If the observed X takes on any value between x1
and x2, then its probability denoted by P(x1 < x2) is
equal to the area bounded by the vertical lines
through the points x1 and x2 and the horizontal line.
 2. If the observed X takes on value greater than
x2, then its probability [P(x>x2)] is equal to the
area to the right of x2.
3. If the observed X takes on value less than x1,
then its probability [P(x<x1)] is equal to the area
to the left of x1.
4. If the observed X takes on a sample value, the
lower and upper boundary of the value are used
to find the area. The lower boundary is
computed by subtracting from it ½ of its lowest
unit while the upper boundary is computed by
adding to the value ½ of its lowest unit. That is,
 X1 = X – half of the unit
X2 = X + half of the unit
Thus,
1. For X = 41, ½ of its unit is 0.5
Upper boundary = 41 + 0.5 = 41.5
Lower boundary = 41 – 0.5 = 40.5
The probability that X = 41 is the area under
the curve between x = 40.5 and x = 41.5 or
P(X=41) = P(40.5<x<41.5)
 The probability that a random variable X takes
on values between x1 and x2 is equal to the area
bounded by the points x1 and x2, which when
converted to z-scores, is equal to the area under
the standard normal curve bounded by z1 and
z2. That is,
P(x1<X<x2) = P(z1<Z<z2) = area between z1 and z2
P(X<x) = P(Z<z) = area to the right of z
P(X>x) = P(Z>z) = area to the left of z
Finding the Area under the Normal Curve
A. Given the standard score
Using the table of the area under the
normal curve, one can determine the area
between any z-score values, below z-score value
and above z-score value.
Examples: Find the area under the normal curve
1. Between z = 0 and z = 2.21
The value z= 2.21 from the table corresponds to
an area of 0.4864, thus
P( 0<z< 2,21)= 0.4864 or 48.64%
2. between z = -1.63 and z = 0
Solution:
P(-1.63< z < 0) = 0.4484 or 44.84%
3. between z = -2.2 and z = 1.43
Solution:
P(-2.2<z<1.43) = 0.4861 + 0.4236
= 0.9097 or 90.97%
4. between z = 2.92 and z = 1.24
Solution:
P(1.24 < z < 2.92) = 0.4982 – 0.3925
= 0.1057 or 10.57%
5. between z = -0.61 and z = -2.54
P( -2.54< z < -0.61) = 0.4945 – 0.2291
= 0.2654 or 26.54%
6. to the right of z = 1.91
P(z > 1.91) = 0.5 – 0.4719
= 0.0281 or 2.81%
7. to the left of z = 1.71
P(z<1.71) = 0.5 + 0.4564
= 0.9564 or 95.64%