STANDARD

NORMAL
DISTRIBUTION
Prepared by: STEVE G. ZACAL, PhD
The Standard Normal Distribution
It is a distribution with a mean of 0 and a standard deviation of 1.

Z-Score or Z-Value
The z value or z score gives the number of standard deviations between the
original measurement x and the mean μ of the x distribution.

𝑟𝑎𝑛𝑑𝑜𝑚 𝑣𝑎𝑙𝑢𝑒 −𝑚𝑒𝑎𝑛

𝑧=
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
 x Value in Original Corresponding z Value or
Distribution Standard Unit

x=μ z=0
x>μ z>0
x<μ z<0

Illustration

Z=0 Z>0 Z<0

Region Under Standard
Normal Curve
The region under the standard normal
curve can be determined using the z-table.
This table shows the four-decimal-place that
describes the area from 0 to a specified value
of z.
Area under the normal
curve between 0 to z

0 z
EXAMPLE 1:
Find the z value for each of the following x values for a normal
distribution with .

a. x = 13 b. x = 7 c. x = 16 d. x = 11
Solutions:
a. x = 13 b. x = 7 c. x = 16 d. x = 11
𝑥 −𝜇 𝑥 −𝜇 𝑥 −𝜇
𝑥 −𝜇 𝑧= 𝑧= 𝑧=
𝑧= 𝜎 𝜎 𝜎
𝜎
16 − 12 11 − 12
13 − 12 7 − 12 𝑧= 𝑧=
𝑧= 𝑧= 3 3
3 3
1 −5 4 −1
𝑧= 𝑧= 𝑧= 𝑧=
3 3 3 3
𝑧 =0.33 𝑧=−1.67 𝑧 =1.33 𝑧=− 0.33
EXAMPLE 2:
Johnny scored 72 in a quiz in Algebra for which the average
score of the class was 65 with a standard deviation of 8. He also took
a quiz in Statistics and scored 60 for which the average score of the
class was 45, and the standard deviation was 12. Relative to other
students in the class, did Johnny do better in Algebra or Statistics?
EXAMPLE 2:
Find the area under the standard normal curve between 0 to 0.75.
A = 0.2734

z=0 z = 0.75

Expanded Form:
0.75= 0.7 + 0.05

column row
Unit place and 2nd decimal
1st decimal place
place
 EXAMPLE 3:
Find the area under the standard normal curve between -1.17 to 0.

A = 0.3790

z = -1.17 z=0

NOTE:
Negative sign indicates the z-score is at
the left side of mean (0).

Expanded Form:
1.17 = 1.1 + 0.07
EXAMPLE 4:
Find the area under the standard normal curve between -0.87 to 1.63.
𝐴1 𝐴2
𝐴1=0.3078

z = -0.87 z=0 z = 1.63

Expanded Form of 0.87:

0.87 = 0.8 + 0.07
 EXAMPLE 4:
Find the area under the standard normal curve between -0.87 to 1.63.
𝐴1=0.3078 𝐴2
𝐴2=0.4484

z = -0.87 z=0 z = 1.63

Expanded Form of 1.63:

1.63 = 1.6 + 0.03
 EXAMPLE 4:
Find the area under the standard normal curve between -0.87 to 1.63.
𝐴1=0.3078 𝐴2=0.4484

z = -0.87 z=0 z = 1.63

𝐴𝑇 =0.3078 +0.4484
𝐴𝑇 =0.7562
 Do you know?

In business, the main objective of management is to earn profit

which means higher revenue. This means that revenue must exceed
the cost of production. However, there are instances when the cost of
production is greater than revenue and sometimes their revenue is just
equal to cost. If the total revenue is greater than the total cost , this is
a good indicator that the business earns profit.
Application (Economics Problem)
The annual profit of an online business is normally distributed
with a mean of ₱20 million a year and a standard deviation of 2.5
million.
What percentage of a profit from ₱20 million to ₱24 million?
Given:
𝑥1 =₱ 20 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑥 2=₱ 24 𝑚𝑖𝑙𝑙𝑖𝑜𝑛
𝜇=₱ 20 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑥1− 𝜇 𝑥2 −𝜇
𝜎 =₱ 2.5 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑧= 𝑧=
𝜎 𝜎
𝑥1 =₱ 20 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 24 − 20
20 − 20 𝑧=
𝑥 2=₱ 24 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑧= 2.5
2.5
0 4
𝑧= 𝑧=
2.5 2.5
𝑧 =0 𝑧 =1.6
Application (Economics Problem)
The annual profit of an online business is normally distributed
with a mean of ₱20 million a year and a standard deviation of 2.5
million.
What percentage of a profit from ₱20 million to ₱24 million?

𝑧 =0 Expanded Form of 1.6:

1.6 = 1.6 + 0.00
𝑧 =1.6

The area between 0 and 1.6 is 0.4452. Thus, 44.52% is the

percentage of profit from ₱20 million to ₱24 million.
z=0 z = 1.6
Application (Economics Problem)
The annual profit of an online business is normally distributed
with a mean of ₱15 million a year and a standard deviation of 1.5
million.
What percentage of a profit from ₱12 million to ₱18 million?
EXAMPLE 5:
Find the area under the standard normal curve between 0.42 to 1.28.
𝐴1 𝑓𝑟𝑜𝑚 0 𝑡𝑜 0.42
𝐴2 𝑓𝑟𝑜𝑚 0𝑡𝑜 1.28

z =z0= 0.42 z = 1.28

𝐴0.42=¿ 0 .1628
𝐴1.28=¿ 0 .3997
EXAMPLE 5:
Find the area under the standard normal curve between 0.42 to 1.28.
𝐴1 𝑓𝑟𝑜𝑚 0 𝑡𝑜 0.42
𝐴2 𝑓𝑟𝑜𝑚 0𝑡𝑜 1.28

z =z0= 0.42 z = 1.28

𝐴0.42=¿ 0 .1628 𝐴= 𝐴1.28 − 𝐴0.42

𝐴1.28=¿ 0 .3997 𝐴=0.3997−0.1628
𝐴=0.2369
EXAMPLE 5:
Find the area under the standard normal curve between -0.54 to -1.03.
𝐴1 𝑓𝑟𝑜𝑚0 𝑡𝑜 − 0.54
𝐴2 𝑓𝑟𝑜𝑚 0𝑡𝑜 − 1.03

z = -1.03 z = -0.54

𝐴−0.54 =¿ 0 .2054 𝐴= 𝐴−1.03 − 𝐴− 0.54

𝐴−1.03 =¿ 0 .3485 𝐴=0.3485−0.2054
𝐴=0 .1431
 EXAMPLE 6: Find the area under the standard normal curve to
the left of z = -0.89 (z < -0.89)

𝐴1 𝑓𝑟𝑜𝑚0 𝑡𝑜 − 0.89
𝐴=0.5000 − 𝐴1

z = -0.89 z=0

𝐴1=¿ 0 .3133 𝐴=0.5000 − 𝐴1

𝐴=0.5000−0.3133
𝐴=0.1867
 EXAMPLE 7: Find the area under the standard normal curve to
the right of z = -0.89 (z > -0.89)

𝐴1 𝑓𝑟𝑜𝑚0 𝑡𝑜 − 0.89 𝐴 2=0.5000

z = -0.89 z=0

𝐴1=¿ 0 .3133 𝐴𝑧 ≻ 0.89 =0.5000+ 𝐴1

𝐴𝑧 ≻ 0.89 =0.5000+0.3133
𝐴𝑧 ≻ 0.89 =0.8133
QUI
Z
I. Find the area under the normal curve.
1. between z = -1.03 and z = -0.87
2. between z = 0.07 and z = 0.74
3. to the right of z = 1.35
4. to the right of z = -2.02
5. to the left of z = -1.47
6. to the left of z = 0.54
1.Find the probability of obtaining a score higher
than 730 on a CPA exam that has a mean of 510
and a standard deviation of 100? Assume CPA
exam scores are normally distributed.

2. Find the probability of randomly obtaining a

score between 300 and 600 on the CPA exam?