COMPLETE

BUSINESS
STATISTICS
by
AMIR D. ACZEL
&
JAYAVEL SOUNDERPANDIAN
7th edition.
Prepared by Lloyd Jaisingh, Morehead State
University

Chapter 4

The Normal Distribution

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

4-2

4 The Normal Distribution

Using

Statistics
Properties of the Normal Distribution
The Template
The Standard Normal Distribution
The Transformation of Normal Random Variables
The Inverse Transformation
The Normal Approximation of Binomial Distributions

4-3

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

Identify when a random variable will be normally distributed

Use the properties of normal distributions
Explain the significance of the standard normal distribution
Compute probabilities using normal distribution tables
Transform a normal distribution into a standard normal distribution
Convert a binomial distribution into an approximate normal distribution
Solve normal distribution problems using spreadsheet templates

4-4

4-1 Introduction
As n increases, the binomial distribution approaches a ...
n=6

n = 10
Binomial Distribution: n=10, p=.5

Binomial Distribution: n=14, p=.5

0.3

0.3

0.2

0.2

0.2

0.1

P(x)

0.3

P(x)

0.1

0.0

0.1

0.0
0

0.0
0

10

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Normal Probability Density

Function:
x 2

Normal Distribution: = 0, = 1
0.4
0.3

1
f ( x)
e 2 2
for x
2 2
where e 2 . 7182818 ... and 3 . 14159265 ...

f(x)

P(x)

Binomial Distribution: n=6, p=.5

n = 14

0.2
0.1
0.0
-5

4-5

The Normal Probability Distribution

The normal probability density function:

2
x

e 2 2 for

0.3

1
x
2 2
where e 2 .7182818 ... and 3.14159265 ...
f (x)

0.4

f(x)

Normal Distribution: = 0, = 1

0.2
0.1
0.0
-5

4-2 Properties of the Normal

Distribution

The normal is a family of

Bell-shaped and symmetric distributions.

Because the distribution is symmetric, one-half (.50 or 50%) lies on
either side of the mean.
Each is characterized by a different pair of mean, , and variance,
. That is: [X~N( )].
Each is asymptotic to the horizontal axis.
The area under any normal probability density function within k
of is the same for any normal distribution, regardless of the mean
and variance.

4-6

4-2 Properties of the Normal

Distribution (continued)

If several independent random variables are normally distributed

then their sum will also be normally distributed.
The mean of the sum will be the sum of all the individual means.
The variance of the sum will be the sum of all the individual
variances (by virtue of the independence).

4-7

4-2 Properties of the Normal

Distribution (continued)

If X1, X2, , Xn are independent normal random variable, then

their sum S will also be normally distributed with
E(S) = E(X1) + E(X2) + + E(Xn)

V(S) = V(X1) + V(X2) + + V(Xn)

Note: It is the variances that can be added above and not the
standard deviations.

4-8

4-2 Properties of the Normal

Distribution Example 4-1
Example 4.1: Let X1, X2, and X3 be independent random variables that are
normally distributed with means and variances as shown.

Mean

Variance

X1

10

X2

20

X3

30

Let S = X1 + X2 + X3. Then E(S) = 10 + 20 + 30 = 60 and

V(S) = 1 + 2 + 3 = 6. The standard deviation of S is 6
= 2.45.

4-9

4-2 Properties of the Normal

Distribution (continued)

If X1, X2, , Xn are independent normal random variable, then the

random variable Q defined as Q = a1X1 + a2X2 + + anXn + b will
also be normally distributed with
E(Q) = a1E(X1) + a2E(X2) + + anE(Xn) + b
V(Q) = a12 V(X1) + a22 V(X2) + + an2 V(Xn)
Note: It is the variances that can be added above and not the
standard deviations.

4-10

4-2 Properties of the Normal

Distribution Example 4-3
Example 4.3: Let X1 , X2 , X3 and X4 be independent random variables that are normally
distributed with means and variances as shown. Find the mean and variance of Q =
X1 - 2X2 + 3X2 - 4X4 + 5
Mean

Variance

X1

12

X2

-5

X3

X4

10

E(Q) = 12 2(-5) + 3(8) 4(10) + 5 = 11

V(Q) = 4 + (-2)2(2) + 32(5) + (-4)2(1) = 73
SD(Q) = 73 8.544

4-11

Computing the Mean, Variance and Standard

Deviation for the Sum of Independent Random
Variables Using the Template

EXAMPLE 4-3

NOTE: You will have to enter the

mean and variance for the individual
terms in the expression for Q.

4-12

4-13

Normal Probability Distributions

All of these are normal probability density functions, though each has a different mean and variance.
Normal Distribution: =40, =1

Normal Distribution: =30, =5

0.4

Normal Distribution: =50, =3

0.2

0.2

0.2

f(y)

f(x)

f(w)

0.3
0.1

0.1

0.1
0.0

0.0
35

40

45

0.0
0

10

20

30

40

W~N(40,1)

X~N(30,25)

Normal Distribution: =0, =1

Consider:

0.4

f(z)

0.3
0.2
0.1
0.0
-5

Z~N(0,1)

P(39 W 41)
P(25 X 35)
P(47 Y 53)
P(-1 Z 1)

50

60

35

45

50

55

Y~N(50,9)
The probability in each
case is an area under a
normal probability density
function.

65

4-14

4-3 The Standard Normal

Distribution

The standard normal random variable, Z, is the normal random

variable with mean = 0 and standard deviation = 1: Z~N(0,12).
Standard Normal Distribution
0 .4

=1

f(z)

0 .3

0 .2

0 .1

0 .0
-5

-4

-3

-2

-1

= 0
Z

Finding Probabilities of the Standard

Normal Distribution: P(0 < Z < 1.56)

4-15

Standard Normal Probabilities

Standard Normal Distribution
0.4

f(z)

0.3
0.2
0.1

1.56

0.0
-5

-4

-3

-2

-1

Look in row labeled 1.5

and column labeled .06 to
find P(0 z 1.56) =
0.4406

z
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3.0

.00
0.0000
0.0398
0.0793
0.1179
0.1554
0.1915
0.2257
0.2580
0.2881
0.3159
0.3413
0.3643
0.3849
0.4032
0.4192
0.4332
0.4452
0.4554
0.4641
0.4713
0.4772
0.4821
0.4861
0.4893
0.4918
0.4938
0.4953
0.4965
0.4974
0.4981
0.4987

.01
0.0040
0.0438
0.0832
0.1217
0.1591
0.1950
0.2291
0.2611
0.2910
0.3186
0.3438
0.3665
0.3869
0.4049
0.4207
0.4345
0.4463
0.4564
0.4649
0.4719
0.4778
0.4826
0.4864
0.4896
0.4920
0.4940
0.4955
0.4966
0.4975
0.4982
0.4987

.02
0.0080
0.0478
0.0871
0.1255
0.1628
0.1985
0.2324
0.2642
0.2939
0.3212
0.3461
0.3686
0.3888
0.4066
0.4222
0.4357
0.4474
0.4573
0.4656
0.4726
0.4783
0.4830
0.4868
0.4898
0.4922
0.4941
0.4956
0.4967
0.4976
0.4982
0.4987

.03
0.0120
0.0517
0.0910
0.1293
0.1664
0.2019
0.2357
0.2673
0.2967
0.3238
0.3485
0.3708
0.3907
0.4082
0.4236
0.4370
0.4484
0.4582
0.4664
0.4732
0.4788
0.4834
0.4871
0.4901
0.4925
0.4943
0.4957
0.4968
0.4977
0.4983
0.4988

.04
0.0160
0.0557
0.0948
0.1331
0.1700
0.2054
0.2389
0.2704
0.2995
0.3264
0.3508
0.3729
0.3925
0.4099
0.4251
0.4382
0.4495
0.4591
0.4671
0.4738
0.4793
0.4838
0.4875
0.4904
0.4927
0.4945
0.4959
0.4969
0.4977
0.4984
0.4988

.05
0.0199
0.0596
0.0987
0.1368
0.1736
0.2088
0.2422
0.2734
0.3023
0.3289
0.3531
0.3749
0.3944
0.4115
0.4265
0.4394
0.4505
0.4599
0.4678
0.4744
0.4798
0.4842
0.4878
0.4906
0.4929
0.4946
0.4960
0.4970
0.4978
0.4984
0.4989

.06
0.0239
0.0636
0.1026
0.1406
0.1772
0.2123
0.2454
0.2764
0.3051
0.3315
0.3554
0.3770
0.3962
0.4131
0.4279
0.4406
0.4515
0.4608
0.4686
0.4750
0.4803
0.4846
0.4881
0.4909
0.4931
0.4948
0.4961
0.4971
0.4979
0.4985
0.4989

.07
0.0279
0.0675
0.1064
0.1443
0.1808
0.2157
0.2486
0.2794
0.3078
0.3340
0.3577
0.3790
0.3980
0.4147
0.4292
0.4418
0.4525
0.4616
0.4693
0.4756
0.4808
0.4850
0.4884
0.4911
0.4932
0.4949
0.4962
0.4972
0.4979
0.4985
0.4989

.08
0.0319
0.0714
0.1103
0.1480
0.1844
0.2190
0.2517
0.2823
0.3106
0.3365
0.3599
0.3810
0.3997
0.4162
0.4306
0.4429
0.4535
0.4625
0.4699
0.4761
0.4812
0.4854
0.4887
0.4913
0.4934
0.4951
0.4963
0.4973
0.4980
0.4986
0.4990

.09
0.0359
0.0753
0.1141
0.1517
0.1879
0.2224
0.2549
0.2852
0.3133
0.3389
0.3621
0.3830
0.4015
0.4177
0.4319
0.4441
0.4545
0.4633
0.4706
0.4767
0.4817
0.4857
0.4890
0.4916
0.4936
0.4952
0.4964
0.4974
0.4981
0.4986
0.4990

4-16

Computing Normal Probabilities Using

the Template
P(0 z 1.56) = 0.4406

Finding Probabilities of the Standard

Normal Distribution: P(Z < -2.47)
z ...
.
.
.
2.3 ...
2.4 ...
2.5 ...
.
.
.

To find P(Z<-2.47):
Find table area for 2.47
P(0 < Z < 2.47) = .4932

P(Z < -2.47) = .5 - P(0 < Z < 2.47)

= .5 - .4932 = 0.0068

0.4909
0.4931
0.4948

.06
.
.
.
0.4911
0.4932
0.4949

.07
.
.
.
0.4913
0.4934
0.4951

Standard Normal Distribution

Area to the left of -2.47

P(Z < -2.47) = .5 - 0.4932
= 0.0068

0.4

Table area for 2.47

P(0 < Z < 2.47) = 0.4932

f(z)

0.3
0.2

0.1

0.0
-5

-4

-3

-2

-1

.08
.
.
.

4-17

4-18

Computing Normal Probabilities Using

the Template
P(z < -2.47) = 0.0068

Finding Probabilities of the Standard

Normal Distribution: P(1< Z < 2)
To find P(1 Z 2):
1. Find table area for 2.00
F(2) = P(Z 2.00) = .5 + .4772 =.9772
2. Find table area for 1.00
F(1) = P(Z 1.00) = .5 + .3413 = .8413
3. P(1 Z 2.00) = P(Z 2.00) - P(Z 1.00)

z
.
.
.
0.9
1.0
1.1
.
.
.
1.9
2.0
2.1
.
.
.

= .9772 - .8413 = 0.1359

Standard Normal Distribution
0.4

Area between 1 and 2

P(1 Z 2) = .9772 - .8413 = 0.1359

f(z)

0.3
0.2
0.1
0.0
-5

-4

-3

-2

-1

.00
.
.
.
0.3159
0.3413
0.3643
.
.
.
0.4713
0.4772
0.4821
.
.
.

...

...
...
...

...
...
...

4-19

4-20

Computing Normal Probabilities Using

the Template
P(1 z 2) = 0.1359

4-21

Finding Values of the Standard Normal

Random Variable: P(0 < Z < z) = 0.40
To find z such that
P(0 Z z) = .40:
1. Find a probability as close as
possible to .40 in the table of
standard normal probabilities.

z
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
.
.
.

.00
0.0000
0.0398
0.0793
0.1179
0.1554
0.1915
0.2257
0.2580
0.2881
0.3159
0.3413
0.3643
0.3849
0.4032
.
.
.

.01
0.0040
0.0438
0.0832
0.1217
0.1591
0.1950
0.2291
0.2611
0.2910
0.3186
0.3438
0.3665
0.3869
0.4049
.
.
.

2. Then determine the value of z

from the corresponding row
and column.
Area to the left of 0 = .50

Also, since P(Z 0) = .50

.03
0.0120
0.0517
0.0910
0.1293
0.1664
0.2019
0.2357
0.2673
0.2967
0.3238
0.3485
0.3708
0.3907
0.4082
.
.
.

.04
0.0160
0.0557
0.0948
0.1331
0.1700
0.2054
0.2389
0.2704
0.2995
0.3264
0.3508
0.3729
0.3925
0.4099
.
.
.

.05
0.0199
0.0596
0.0987
0.1368
0.1736
0.2088
0.2422
0.2734
0.3023
0.3289
0.3531
0.3749
0.3944
0.4115
.
.
.

.06
0.0239
0.0636
0.1026
0.1406
0.1772
0.2123
0.2454
0.2764
0.3051
0.3315
0.3554
0.3770
0.3962
0.4131
.
.
.

.07
0.0279
0.0675
0.1064
0.1443
0.1808
0.2157
0.2486
0.2794
0.3078
0.3340
0.3577
0.3790
0.3980
0.4147
.
.
.

.08
0.0319
0.0714
0.1103
0.1480
0.1844
0.2190
0.2517
0.2823
0.3106
0.3365
0.3599
0.3810
0.3997
0.4162
.
.
.

Standard Normal Distribution

0.4

P(z 0) = .50

Area = .40 (.3997)

0.3

f(z)

P(0 Z 1.28) .40

.02
0.0080
0.0478
0.0871
0.1255
0.1628
0.1985
0.2324
0.2642
0.2939
0.3212
0.3461
0.3686
0.3888
0.4066
.
.
.

0.2

0.1

0.0

P(Z 1.28) .90

-5

-4

-3

-2

-1

Z = 1.28

.09
0.0359
0.0753
0.1141
0.1517
0.1879
0.2224
0.2549
0.2852
0.3133
0.3389
0.3621
0.3830
0.4015
0.4177
.
.
.

Finding Values of the Standard Normal

Random Variable: P(0 < Z < z) = 0.40
P(0 Z z) = 0.40 z = 1.28

4-22

4-23

99% Interval around the Mean

To have .99 in the center of the distribution, there
should be (1/2)(1-.99) = (1/2)(.01) = .005 in each
tail of the distribution, and (1/2)(.99) = .495 in
each half of the .99 interval. That is:

P(0 Z z.005) = .495

z
.
.
.
2.4 ...
2.5 ...
2.6 ...
.
.
.

.04
.
.
.
0.4927
0.4945
0.4959
.
.
.

.05
.
.
.
0.4929
0.4946
0.4960
.
.
.

Look to the table of standard normal probabilities

Area in center left = .495
to find that:

.06
.
.
.
0.4931
0.4948
0.4961
.
.
.

.07
.
.
.
0.4932
0.4949
0.4962
.
.
.

.08
.
.
.
0.4934
0.4951
0.4963
.
.
.

.09
.
.
.
0.4936
0.4952
0.4964
.
.
.

Total area in center = .99

0.4

Area in center right = .495

z.005
z.005
P(-.2575 Z ) = .99

f(z)

0.3

Area in left tail = .005

0.2

Area in right tail = .005

0.1

0.0
-5

-4

-3

-2

-z.005
-2.575

-1

z.005
2.575

4-24

99% Interval around the Mean

P(-2.57583 Z 2.57583) = 0.99

4-4 The Transformation of Normal

Random Variables

4-25

Thearea
areawithin
withinkk ofofthe
themean
meanisisthe
thesame
samefor
forall
allnormal
normalrandom
randomvariables.
variables.So
Soan
an
The
areaunder
underany
anynormal
normaldistribution
distributionisisequivalent
equivalenttotoan
anarea
areaunder
underthe
thestandard
standardnormal.
normal. InIn
area
thisexample:
example:P(40
P(40X
XP(-1
P(-1Z
Zsinceand
sinceand
this
Thetransformation
transformationofofXXtotoZ:Z:
The
X x

Normal Distribution: =50, =10

0.07
0.06

Transformation
f(x)

(1) Subtraction: (X - x)

0.05
0.04
0.03
=10

0.02

Standard Normal Distribution

0.01
0.00

0.4

20

30

40

50

60

70

80

90 100

0.3
0.2

(2) Division by x)

f(z)

10

1.0

0.1

0.0
-5

-4

-3

-2

-1

Theinverse
inversetransformation
transformationof
ofZZtotoX:
X:
The

X x Z x

Example 4-5: Using the Normal

Transformation

Example
Example 4-5
4-5
X~N(160,3022)

P (100 X 180)
100 X 180
P

100 160 Z 180 160
P

30
30
P 2 Z .6666
0.4772 0.2475 0.7247

4-26

Example 4-5: Using the Normal

Distribution Template
P(-2 Z 0.6666)

4-27

Example 4-5: Using the Normal Distribution

Template without Transformation
P(100 X 180); = 160, = 30

4-28

Example 4-6: Using the Normal

Transformation
Example
Example 4-6
4-6
X~N(127,2222)

P ( X 150)
X 150

150 127

P Z

22
P Z 1.045
0.5 0.3520 0.8520

4-29

Example 4-6: Using the Normal

Distribution Template
P(Z < 1.045)

4-30

Example 4-6: Using the Normal Distribution

Template without Transformation
P(X < 150); = 127, = 22

4-31

4-32

Using the Normal Transformation Example 4-7

Normal Distribution: = 383, = 12
0.05
0.04

f(X)

0.03
0.02

Example
Example 4-7
4-7

0.01
Standard Normal Distribution

X~N(383,1222)

alen
v
i
Equ

0.3

f(z)

P ( 394 X 399)
394
X 399

394 383 399 383
P

12
12
P 0.9166 Z 1.333
0.4088 0.3203 0.0885

0.00

0.4

0.2

0.1

0.0
-5

-4

-3

-2

-1

340
as
e
t ar

390

440

Example 4-7: Using the Normal

Distribution Template
P(0.9166 < Z < 1.3333)

4-33

Example 4-7: Using the Normal Distribution

Template without Transformation
P(394 < X < 399); = 383, = 12

4-34

The Transformation of Normal

Random Variables
The transformation of X to Z:
Z

X x
x

The inverse transformation of Z to X:

X

The transformation of X to Z, where a and b are numbers::

P( X a) P Z

P( X b ) P Z

a
b

P(a X b ) P
Z

4-35

4-36

Normal Probabilities (Empirical Rule)

The probability that a normal

random variable will be within 1
standard deviation from its mean (on
either side) is 0.6826, or approximately
0.68.
The probability that a normal
random variable will be within 2
standard deviations from its mean is
0.9544, or approximately 0.95.
The probability that a normal
random variable will be within 3
standard deviation from its mean is
0.9974.

S tan d ard N o rm al D is trib u tio n

0 .4

0 .3

f(z)

0 .2

0 .1

0 .0
-5

-4

-3

-2

-1

4-37

4-5 The Inverse Transformation

Thearea
areawithin
withinkk ofofthe
themean
meanisisthe
thesame
samefor
forall
allnormal
normalrandom
randomvariables.
variables.To
Tofind
findaa
The
probabilityassociated
associatedwith
withany
anyinterval
intervalofofvalues
valuesfor
forany
anynormal
normalrandom
randomvariable,
variable,all
allthat
that
probability
neededisistotoexpress
expressthe
theinterval
intervalininterms
termsofofnumbers
numbersofofstandard
standarddeviations
deviationsfrom
fromthe
the
isisneeded
2
mean.That
Thatisisthe
thepurpose
purposeofofthe
thestandard
standardnormal
normaltransformation.
transformation. IfIfX~N(50,10
X~N(50,102),
),
mean.
x 70

P( X 70) P

70 50
P Z
P( Z 2)

10

Thatis,
is,P(X
P(X>70)
>70)can
canbe
befound
foundeasily
easilybecause
because70
70isis22standard
standarddeviations
deviationsabove
abovethe
themean
mean
That
X:70
70==++22. . P(X
P(X>>70)
70)isisequivalent
equivalenttotoP(Z
P(Z>>2),
2),an
anarea
areaunder
underthe
thestandard
standardnormal
normal
ofofX:
distribution.
distribution.
Normal Distribution: = 124, = 12

Example 4-12
X~N(124,1222)
P(X > x) = 0.10 and P(Z > 1.28) 0.10
x = + z = 124 + (1.28)(12) = 139.36

0.04

.
.
.
...
...
...
.
.
.

.07
.
.
.
0.3790
0.3980
0.4147
.
.
.

.08
.
.
.
0.3810
0.3997
0.4162
.
.
.

.09
.
.
.
0.3830
0.4015
0.4177
.
.
.

f(x)

0.03
z
.
.
.
1.1
1.2
1.3
.
.
.

0.02

0.01
0.01
0.00
80

130

139.36

180

4-38

Template Solution for Example 4-8

Example 4-8
X~N(124,1222)
P(X > x) = 0.10 and P(Z > 1.28) 0.10
x = + z = 124 + (1.28)(12) = 139.36

4-39

The Inverse Transformation (Continued)

Example4-9
4-9
X~N(5.7,0.52) )
Example
X~N(5.7,0.5
P(X>>x)=0.01
x)=0.01 and
andP(Z
P(Z>>2.33)
2.33)
0.01
0.01
P(X
z==5.7
5.7++(2.33)(0.5)
(2.33)(0.5)==6.865
6.865
xx==++z
2

z
.
.
.
2.2
2.3
2.4
.
.
.

.02
.
.
.
0.4868
0.4898
0.4922
.
.
.

.
.
.
...
...
...
.
.
.

.03
.
.
.
0.4871
0.4901
0.4925
.
.
.

Example4-10
4-10
X~N(2450,4002)2)
Example
X~N(2450,400
P(a<X<b)=0.95 and
andP(-1.96<Z<1.96)
P(-1.96<Z<1.96)0.95
0.95
P(a<X<b)=0.95
z
z==2450
2450(1.96)(400)
(1.96)(400)==2450
2450
xx==
784=(1666,3234)
784=(1666,3234)
P(1666<<XX<<3234)
3234)== 0.95
0.95
P(1666

.04
.
.
.
0.4875
0.4904
0.4927
.
.
.

z
.
.
.
1.8
1.9
2.0
.
.

Normal Distribution: = 5.7 = 0.5

0.8

.07
.
.
.
0.4693
0.4756
0.4808
.
.

0.0015

0.6

.4750

.4750

0.0010

0.5
0.4

f(x)

f(x)

.06
.
.
.
0.4686
0.4750
0.4803
.
.

Normal Distribution: = 2450 = 400

Area = 0.49

0.7

.05
.
.
.
0.4678
0.4744
0.4798
.
.

.
.
.
...
...
...
.
.

X.01 = +z = 5.7 + (2.33)(0.5) = 6.865

0.3
0.2

0.0005
.0250

.0250

Area = 0.01

0.1
0.0

0.0000
3.2

4.2

5.2

6.2

7.2

8.2

1000

2000

X
-5

-4

-3

-2

-1

3000

4000

X
1

Z.01 = 2.33

-5

-4

-3

-2

-1.96

-1

1.96

4-40

Template Solution for Examples 4-9

Example4-9
4-9
X~N(5.7,0.52)2)
Example
X~N(5.7,0.5
P(X>>x)=0.01
x)=0.01 and
andP(Z
P(Z>>2.33)
2.33)
0.01
0.01
P(X
z==5.7
5.7++(2.33)(0.5)
(2.33)(0.5)==6.865
6.865
xx==++z

4-41

Template Solution for Examples 4-10

Example4-10
4-10
X~N(2450,4002)2)
Example
X~N(2450,400
P(a<X<b)=0.95 and
andP(-1.96<Z<1.96)
P(-1.96<Z<1.96)0.95
0.95
P(a<X<b)=0.95
z
z==2450
2450(1.96)(400)
(1.96)(400)==2450
2450
xx==
784=(1666,3234)
784=(1666,3234)
P(1666<<XX<<3234)
3234)== 0.95
0.95
P(1666

Finding Values of a Normal Random

Variable, Given a Probability
Normal Distribution: = 2450, = 400
0.0012
.
0.0010
.

f(x)

0.0008
.
0.0006
.
0.0004
.
0.0002
.
0.0000
1000

2000

3000

4000

S tand ard Norm al D is trib utio n

0.4
0.3

f(z)

Drawpictures
picturesof
of
1.1. Draw
thenormal
normal
the
distributionin
in
distribution
questionand
andof
ofthe
the
question
standardnormal
normal
standard
distribution.
distribution.

0.2
0.1
0.0
-5

-4

-3

-2

-1

4-42

Finding Values of a Normal Random

Variable, Given a Probability
Normal Distribution: = 2450, = 400
0.0012
.

Shadethe
thearea
area
2.2. Shade
correspondingtoto
corresponding
thedesired
desired
the
probability.
probability.

.4750

0.0010
.

.4750

f(x)

0.0008
.
0.0006
.
0.0004
.
0.0002
.

.9500

0.0000
1000

2000

3000

4000

S tand ard Norm al D is trib utio n

0.4

.4750

.4750

0.3

f(z)

Drawpictures
picturesofof
1.1. Draw
thenormal
normal
the
distributioninin
distribution
questionand
andofofthe
the
question
standardnormal
normal
standard
distribution.
distribution.

0.2
0.1

.9500

0.0
-5

-4

-3

-2

-1

4-43

Finding Values of a Normal Random

Variable, Given a Probability
Normal Distribution: = 2450, = 400
.4750

0.0010
.

.4750

0.0008
.
0.0006
.
0.0004
.
0.0002
.

.9500

0.0000
1000

.05
.
.
.
0.4678
0.4744
0.4798
.
.

.06
.
.
.
0.4686
0.4750
0.4803
.
.

3000

4000

S tand ard Norm al D istrib utio n

0.4

.4750

.4750

0.3

f(z)
.
.
.
...
...
...
.
.

2000

Shadethe
thearea
area
2.2. Shade
corresponding
corresponding
thedesired
desired
totothe
probability.
probability.
z
.
.
.
1.8
1.9
2.0
.
.

Fromthe
thetable
table
3.3. From
thestandard
standard
ofofthe
normal
normal
distribution,
distribution,
findthe
thezzvalue
value
find
orvalues.
values.
or

0.0012
.

f(x)

Drawpictures
picturesofof
1.1. Draw
thenormal
normal
the
distributioninin
distribution
questionand
andof
ofthe
the
question
standardnormal
normal
standard
distribution.
distribution.

.07
.
.
.
0.4693
0.4756
0.4808
.
.

0.2
0.1

.9500

0.0
-5

-4

-3

-2

-1

-1.96

1.96

4-44

Finding Values of a Normal Random

Variable, Given a Probability
Normal Distribution: = 2450, = 400
.4750

0.0010
.

.4750

0.0008
.
0.0006
.
0.0004
.
0.0002
.

.9500

0.0000
1000

.05
.
.
.
0.4678
0.4744
0.4798
.
.

.06
.
.
.
0.4686
0.4750
0.4803
.
.

3000

4000

Usethe
the
4.4. Use
transformation
transformation
fromzztotoxxtotoget
get
from
value(s)ofofthe
the
value(s)
originalrandom
random
original
variable.
variable.

S tand ard Norm al D is trib utio n

0.4

.4750

.4750

0.3

f(z)
.
.
.
...
...
...
.
.

2000

Shadethe
thearea
area
2.2. Shade
corresponding
corresponding
thedesired
desired
totothe
probability.
probability.
z
.
.
.
1.8
1.9
2.0
.
.

Fromthe
thetable
table
3.3. From
thestandard
standard
ofofthe
normal
normal
distribution,
distribution,
findthe
thezzvalue
value
find
orvalues.
values.
or

0.0012
.

f(x)

Drawpictures
picturesof
of
1.1. Draw
thenormal
normal
the
distributionin
in
distribution
questionand
andof
ofthe
the
question
standardnormal
normal
standard
distribution.
distribution.

.07
.
.
.
0.4693
0.4756
0.4808
.
.

0.2
0.1

4-45

.9500

0.0
-5

-4

-3

-2

-1

-1.96

1.96

zz==2450
2450(1.96)(400)
(1.96)(400)
x x==
=
2450
784=(1666,3234)
= 2450 784=(1666,3234)

Finding Values of a Normal Random

Variable, Given a Probability
Thenormal
normaldistribution
distributionwith
with==3.5
3.5and
and==1.323
1.323isisaaclose
close
The
approximationto
tothe
thebinomial
binomialwith
withnn==77and
andpp==0.50.
0.50.
approximation
P(x<4.5) = 0.7749

Normal Distribution: = 3.5, = 1.323

Binomial Distribution: n = 7, p = 0.50

0.3

0.3

P( x 4) = 0.7734
0.2

f(x)

P(x)

0.2

0.1

0.1

0.0

0.0
0

10

MTB > cdf 4.5;

MTB > cdf 4.5;
SUBC> normal 3.5 1.323.
SUBC> normal 3.5 1.323.
Cumulative Distribution Function
Cumulative Distribution Function

MTB > cdf 4;

MTB > cdf 4;
SUBC> binomial 7,.5.
SUBC> binomial 7,.5.
Cumulative Distribution Function
Cumulative Distribution Function

Normal with mean = 3.50000 and standard deviation = 1.32300

Normal with mean = 3.50000 and standard deviation = 1.32300

Binomial with n = 7 and p = 0.500000

Binomial with n = 7 and p = 0.500000

x P( X <= x)
x P( X <= x)
4.5000
0.7751
4.5000
0.7751

x P( X <= x)
x P( X <= x)
4.00
0.7734
4.00
0.7734

4-46

4-7 The Normal Approximation of Binomial

Distribution
Thenormal
normaldistribution
distributionwith
with==5.5
5.5and
and==1.6583
1.6583isisaacloser
closer
The
approximationto
tothe
thebinomial
binomialwith
withnn==11
11and
andpp==0.50.
0.50.
approximation
P(x < 4.5) = 0.2732
Normal Distribution: = 5.5, = 1.6583

Binomial Distribution: n = 11, p = 0.50

P(x 4) = 0.2744

0.3
0.2

f(x)

P(x)

0.2

0.1

0.1

0.0

0.0
0

10

9 10 11

4-47

Approximating a Binomial Probability

Using the Normal Distribution

P ( a X b) P

a np
b np
Z

np(1 p)
np(1 p)

for n large (n 50) and p not too close to 0 or 1.00

or:
a 0.5 np
b 0.5 np
Z
P (a X b) P

np(1 p)
np(1 p)
for n moderately large (20 n < 50).
NOTE:IfIfppisiseither
eithersmall
small(close
(closeto
to0)
0)or
orlarge
large(close
(closeto
to1),
1),use
usethe
the
NOTE:
Poissonapproximation.
approximation.
Poisson

4-48

4-49

Using the Template for Normal Approximation

of the Binomial Distribution