Standard Normal Distribution

The standard normal distribution is a special case of the normal distribution. It is the distribution
that occurs when a normal random variable has a mean of zero and a standard deviation of
one. The z-score is the normal random variable of a standard normal distribution. Every normal
random variable X can be changed into a z score via the following formula:
z = (X - ) /
A standard normal distribution table/z-table shows a cumulative probability associated with a
particular z-score.
The cumulative probability appears in the cell of the table. For example, to find the cumulative
probability of a z-score equal to 3.07, cross-reference the row of the table containing 3.07 with
the column containing 0.07. The table shows that the probability that is P(Z < 3.07) = 0.9989.
z
3.0
...
1.4
1.3
1.2
...

0.00
0.001
3
...
0.080
8
0.096
8
0.115
1
...
0.998
7

3.0

0.01
0.001
3
...
0.079
3
0.095
1
0.113
1
...
0.998
7

0.02
0.001
3
...
0.077
8
0.093
4
0.1112
...
0.998
7

0.03
0.001
2
...
0.076
4
0.091
8
0.109
3
...
0.998
8

0.04
0.001
2
...
0.074
9
0.090
1
0.107
5
...
0.998
8

0.05
0.001
1
...
0.073
5
0.088
5
0.105
6
...
0.998
9

0.06
0.0011
...
0.072
2
0.086
9
0.103
8
...
0.998
9

0.07
0.001
1
...
0.070
8
0.085
3
0.102
0
...
0.998
9

0.08
0.001
0
...
0.069
4
0.083
8
0.100
3
...
0.999
0

0.09
0.001
0
...
0.068
1
0.082
3
0.098
5
...
0.999
0

Properties of a Normal Curve:

The mean, median and mode are equal.

The normal curve is bell-shaped and is symmetric about the mean.
The normal curve approaches the x-axis, but never touches it as it extends farther and
farther away from the mean.
The total area under the curve is equal to 1.

In order to solve problems regarding standard normal distribution, the following are the two
steps:

1. Transform raw data. They need to be changed into z-scores, using the formula
shown earlier: z = (X - ) / .
2. Find probability. Once the data have been changed into z-scores, you can use your
handheld graphing calculators to find probabilities associated with the z-scores.

T-distribution
The t distribution is a probability distribution that is used to estimate population parameters
when the sample size is small (n>30) and/or when the population standard deviation is
unknown.
If the distribution of a random variable x is approximately normal, then
t = [ xx - ] / [ s / sqrt( n ) ]
Properties of the t Distribution
The t distribution has the following properties:

The mean, median and mode of the distribution are equal to 0.

The degrees of freedom are equal to one less than the sample size (d.f. = n 1).

The t-distribution is bell-shaped and symmetric about the mean.

The total area under a t-curve is 1 or 100%.

As the degrees of freedom increase, the t-distribution approaches the normal

distribution. After 30 d.f., the t-distribution is very close to the standard normal zdistribution.

The t-distribution is a family of curves, each determined by a parameter called the

degrees of freedom. The degrees of freedom are the number of free choices left after a
sample statistic such as

x is calculated

When a sample of size n is drawn from a population having a normal distribution, the sample
mean can be changed into a t statistic, using the formula showed at the beginning of this lesson.
The t statistic produced by this change can be associated with a unique cumulative probabilty.

This cumulative probability represents the likelihood of finding a sample mean less than or equal
to x, given a random sample of size n.

Interval Estimation
In statistics, estimation refers to the process by which one makes inferences about a population,
based on information obtained from a sample.
Point Estimate vs. Interval Estimate
Statisticians use sample statistics to estimate population parameters. For example, sample
means are used to estimate population means; sample proportions, to estimate population
proportions.
An estimate of a population parameter may be expressed in two ways:

A point estimate of a population parameter is a single value of a statistic. For example,

the sample mean x is a point estimate of the population mean . Similarly, the sample
proportion p is a point estimate of the population proportion P.

An interval estimate is defined by two numbers, between which a population parameter

is said to lie. For example, a < x < b is an interval estimate of the population mean . It
indicates that the population mean is greater than a but less than b.

Confidence Intervals
Statisticians use a confidence interval to express the precision and uncertainty associated with
a particular sampling method. A confidence interval consists of three parts.

A confidence level.

A statistic.

A margin of error.

The confidence level describes the uncertainty of a sampling method. The statistic and the
margin of error define an interval estimate that describes the precision of the method. The
interval estimate of a confidence interval is defined by the sample statistic + margin of error.
Here is the formula:
x-E<<x+E
Confidence Level

The probability part of a confidence interval is called a confidence level. The confidence level
describes the likelihood that a particular sampling method will produce a confidence interval that
includes the true population parameter. The confidence levels are 90%, 95% and 99%.
Margin of Error
In a confidence interval, the range of values above and below the sample statistic is called
the margin of error.
For normal distribution:
E=(Zc * )/sqrt n
For t- distribution:
E=(tc*s) /sqrt n