Topic : The Normal Distribution and Other

Continuous Distributions
• The Uniform Distribution
• The Normal Distribution
• The Exponential Distribution

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 Learning Outcome
 Identify and explain some examples of continuous
probability distributions
 Calculate typical problems related to continuous probability
distributions

Bina Nusantara University 2

 DEFINITION
• A continuous random variable is a variable that can
assume any value on a continuum (can assume an
uncountable number of values)
– thickness of an item
– time required to complete a task
– temperature of a solution
– Height
• These can potentially take on any value, depending only
on the ability to measure precisely and accurately.

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 7.1 UNIFORM DISTRIBUTION

• The uniform distribution is a probability distribution that has

equal probabilities for all possible outcomes of the random
variable

• A value has the same probability of occurrence anywhere in

the range between smallest value (a) and the largest value (b)

• Because of its shape it is also called a rectangular distribution

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 7.1 UNIFORM DISTRIBUTION
• Formula

1
if a  X  b
ba xa
f(X) = F ( x) 
ba
0 otherwise
where
f(X) = value of the density function at any X value
a = minimum value of X
b = maximum value of X
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 7.1 UNIFORM DISTRIBUTION
The mean of a uniform distribution is:
ab
μ
2
The standard deviation is:

(b - a)2
σ
12

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 7.1 UNIFORM DISTRIBUTION
Example 1:
Finding P(0.1<X<0.3) for a uniform distribution with a=0 and
b=1
P (0.1  x  0.3)  P ( x  0.3)  P ( x  0.1)
0.3  0 0.1  0
   0. 2
1 0 1 0
f(X)

1 X
0 0.1 0.3
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 7.2 NORMAL DISTRIBUTION

Normal Distribution is the most common continuous

distribution used in statistics.
It is vitally important because :
 Numerous continuous variables common in business have
distribution that closely resemble the normal distribution
 Can be used to approximate various discrete probability
distribution
 Provides the basis for classical statistical inference because of
its relationship to the central limit theorem

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 7.2 NORMAL DISTRIBUTION
Theoretical Properties :
• ‘Bell Shaped’ f(X)
• Symmetrical
• Mean, Median and Mode are equal
• Location is characterized by the σ
mean, μ μ
• Spread is characterized by the
standard deviation, σ Mean
•The random variable has an infinite = Median
= Mode
theoretical range: - to +

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 7.2 NORMAL DISTRIBUTION
The formula for the normal probability density function is
2
1  (X μ) 
1  
2  

f(X)  e
2π
Where
e = the mathematical constant approximated by 2.71828
π = the mathematical constant approximated by 3.14159
μ = the population mean
σ = the population standard deviation
X = any value of the continuous variable
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 7.2 NORMAL DISTRIBUTION

 =1

 =3

 =10

1=6 2=10

By varying the parameters μ and σ, we obtain

different normal distributions
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 7.2 NORMAL DISTRIBUTION
Standardized normal distribution
(Z~N(0,1))
 Any normal distribution (with any f(Z)
mean and standard deviation
combination) can be transformed
into the standardized normal 1
distribution (Z).
Z
 Need to transform X units into Z 0
units.
𝜇 𝑥
 The standardized normal distribution
has a mean of 0 and a standard
deviation of 1.
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 7.2 NORMAL DISTRIBUTION
Standardized normal distribution (Z).
 Translate from X to the standardized normal (the “Z”
distribution) by subtracting the mean of X and dividing by its
standard deviation:
X μ
Z
σ
 probability density function is
Z2
1 
f(Z)  e 2
2π
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 7.2 NORMAL DISTRIBUTION

Probability is measured by the area under the curve

f(X)
P(a ≤ X ≤ b)

(Note that the probability

of any individual value is
zero)
x
a b
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 7.2 NORMAL DISTRIBUTION

Example 2:
The home page download time is following the normal
distribution with μ=7 seconds and σ=2. Calculate the probability
of having…. as the download time:
a. less than 9 seconds
b. more than 9 seconds
c. Between 7 and 9 seconds.

d. How much time (in seconds) will elapse before 10% the
downloads are complete?
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 7.2 NORMAL DISTRIBUTION

Example 2 (Continued):
a. less than 9 seconds
Xμ 97 P(x<9)
μ=7
Z  1 σ=2
σ 2

P(x<9) = P(z<1) = 0.8413

7 9 X scale
0 1 Z scale

Thus, 84,13% persons have download times 9 seconds or less

In Excel, use ‘=NORM.DIST(x;mean;std.dev;True)’
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Or ‘=NORM.DIST(9;7;2;True) = 0.84132275’
 7.2 NORMAL DISTRIBUTION

Example 2 (Continued): P(x>9)

b. more than 9 seconds
P(x>9) = 1-P(x<=9)
μ=7
= 1-P(z<=1) σ=2
= 1 -0.8413
= 0.1587
7 9 X scale
0 1 Z scale

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 7.2 NORMAL DISTRIBUTION

Example 2 (Continued):
c. Between 7 and 9 seconds
77 97 P(7≤x ≤ 9) μ=7
P(7  x  9)  P z 
 2 2  σ=2
 P(0  z  1)
 P( z  1)  P( z  0)
 0.8413  0.5  0.3413 X scale
7 9
0 1 Z scale

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 7.2 NORMAL DISTRIBUTION
Example 2 (Continued):
d. How much time (in seconds) will elapse before 10% the
downloads are complete?
P(Z<z) = 10% 10%=0.10
μ=7
z = -1.28 σ=2

𝑥 −7
− 1.28 =
2
𝑥=2 ( − 1.28 )+ 7=4.44 Z = -1.28 7 X scale
0 Z scale

Thus, 10% of the download times are 4.44 seconds or less

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 7.2 NORMAL DISTRIBUTION
Table of Normal Standard Distribution
z 0.00 0.01 0.02 0.03
0.0 0.5000 0.5040 0.5080 …
0.1 0.5398 0.5438 0.5478
0.2 0.5793 0.5832 0.5871
0.3 0.6179 0.6217 0.6255 z
0.4 0.6554 0.6591 0.6628
0.5 0.6915 0.6950 0.6985
0.6 0.7257 0.7291 0.7324
0.7 0.7580 0.7611 0.7642 P(z< 0.42)=0.6628
0.8 0.7881 0.7910 0.7939
0.9 0.8159 0.8186 0.8212
1.0 0.8413 0.8438 0.8461
…

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 7.3 THE EXPONENTIAL DISTRIBUTION

Used to model the length of time between two occurrences

of an event (the time between arrivals)

Examples:
• Time between trucks arriving at an unloading dock
• Time between transactions at an ATM Machine
• Time between phone calls to the main operator

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 7.3 THE EXPONENTIAL DISTRIBUTION
 Defined by a single parameter, its mean λ (lambda)
 The probability that an arrival time is less than some specified
time X is

P(arrival time  X)  1  e  λX
where
e = mathematical constant approximated by 2.71828
λ = the population mean number of arrivals per unit
X = any value of the continuous variable where 0 < X < ∞

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 7.3 THE EXPONENTIAL DISTRIBUTION
 Expected value or Mean time between arrivals

 Standard deviation (square-root of variance) of the time

between arrivals

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 7.3 THE EXPONENTIAL DISTRIBUTION

Example 3:
The customers arrive at a bank’s ATM at a rate of 20 per hour. If a
customer has just arrived,
(a) what is the probability that the next customer will arrive
within 6 minutes? 20 ( 0.1)
λ = 20 P(arrival time  0 .1)  1  e
X = 6/60 = 0.1  0.8647
(b) what is the expected value and the variance?

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 EXERCISES
1. Suppose that Z~N(0,1). Find
(a) P(Z≤1.34)
(b) P(Z≥ - 0.22)
(c) P(-2.19 ≤ Z ≤ 0.43)
(d) The value of x for which P(Z ≤ x) = 0.55

2. Suppose that X ~ N (μ=2600, σ=6). Find :

(e) P(2599≤ X ≤ 2601)
(f) P(X> 2650)

3. Bricks have weights that are independently distributed with a normal distribution
that has mean 1320 and a standard deviation of 15. Find :
(a) the probability that weight less than 1300
(b) the probability that weight between 1300 and 1320
(c) the probability that weight more than 1300

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 THANK YOU

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