NORMAL DISTRIBUTION

Normal distribution is probably one of the most

important and widely used continuous
distribution. It is known as a normal random
variable, and its probability distribution is called
a normal distribution

It is widely used in statistical inference.

The Normal Probability Density Function:

1 x 2
1 (

)
f ( x) e 2
2

This is a bell shaped curve with

different centers and spreads
Note constants: depending on and
=3.14159
e=2.71828
The Normal Distribution

f(X) Changing shifts the

distribution left or right.

Changing increases or
decreases the spread.

X
Characteristics of the Normal Distribution:

1. The distribution is bell shaped and is symmetrical

about its mean.
Its skewness measure is zero

x
2. It is asymptotic to the axis, i.e., it extends
indefinitely in either direction from the mean.
3. It is a continuous distribution.
4. It is a family of curves, i.e., every unique pair of
mean and standard deviation defines a different
normal distribution
5. Thus, the normal distribution is completely
described by two parameters: mean and
standard deviation.
6. The mean can be any numerical value:
negative, zero, or positive.

-10 0 25
7. The standard deviation determines the width
of the curve: larger values result in wider,
flatter curves.

= 15

= 25

x
8. Total area under the curve sums to 1, i.e., the
area of the distribution on each side of the
mean is 0.5.

.5 .5

x
9. It is unimodal, i.e., values mound up only in
the center of the curve.
10. The highest point on the normal curve is at
the mean, which is also the median and mode.

x
The Normal PDF

Its a probability function, so no matter what the values

of and , must integrate to 1

1 x 2
1 ( )

2
e 2 dx 1
Normal distribution is defined by its mean
and standard dev.
1 x 2
1 ( )
E(X)= =

x 2
e 2 dx

1 x 2
1 ( )
dx) 2
2
( x e 2
Var(X) = = 2
2

X ~ N(, 2 )
Properties of the Normal Distribution

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.
Properties of the Normal Distribution
(continued)
Example Let X1, X2, and X3 be independent random variables that
are normally distributed with means and variances as shown.
Mean Variance
X1 10 1
X2 20 2
X3 30 3

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.
Properties of the Normal Distribution
(continued)
Example 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 4
X2 -5 2
X3 8 5
X4 10 1
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
**The beauty of the normal curve:

No matter what and are, the area between - and

+ is about 68.26%; the area between -2 and +2
is about 95.44%; and the area between -3 and +3 is
about 99.73%. Almost all values fall within 3 standard
deviations.
The Empirical Rule
and the Normal Distribution

Dark blue is less than one standard deviation from the mean. For the normal
distribution, this accounts for approximately about 68% of the set (dark
blue) while two standard deviations from the mean (medium and dark blue)
account approximately for about 95% and three standard deviations (light,
medium, and dark blue) account approximately for about 99.7%.
68-95-99.7 Rule in Math terms
1 x 2
1 ( )

2
e 2
dx .68 ( approx .)

2 1 x 2
1 ( )


2 2
e 2
dx .95 ( approx .)

3 1 x 2
1 ( )


3 2
e 2
dx .997
Standard Normal Probability Distribution

A random variable that has a normal distribution

with a mean of zero and a standard deviation of
one is said to have a standard normal probability
distribution.
The letter z is commonly used to designate this
normal random variable.
The following expression convert any Normal
Distribution into the Standard Normal Distribution

x
z

NORMAL DISTRIBUTION
Area under Normal Curve:
The area between two limits of an interval under a normal
probability curve cannot be determined analytically.
Tables of areas evaluated numerically could have been
constructed but it would be impossible for an infinite number
of normal curves for all values of and .
This problem is overcome by Standard Normal Probability
Distribution whose mean is zero ( = 0) and standard deviation
is one ( = 1). The standard normal variable is denoted by x:
NORMAL DISTRIBUTION

The table of areas under the standard normal curve is used to find
area under normal probability curve:

Following steps are involved in determining the area or probability of a

particular interval of a normal distribution with and :

(i) Determine the z-values for each limit of interval,

(ii) From the normal area table, determine the area for each z-value,

(iii) Subtract the smaller area from the larger one.

 NORMAL DISTRIBUTION
Precisely, a value of random variable x can be converted to value z by:
x
z

Where and are the mean and standard deviation of the random variable z.

Conversely, the z-value can be converted into random variable x by:

x=+z

z is the number of standard deviations from or to the mean. All intervals containing the
same number of standard deviations from mean will contain the same area under the
curve for any normal distribution.

**Normal Area Table gives an idea under the curve to the left of a z-value. For example,
for z = 1.51, the Area under Normal Curve (as shown in the Table) is 0.5 + 0.4345 =
0.9345; for z = 2.69, the Area under Normal Curve (from the Table) is 0.0036.
NORMAL DISTRIBUTION
All normal density curves satisfy the following property which is often
referred to as the Empirical Rule.

68% of the observations fall within 1 standard deviation of the mean,

that is, between - and +.

95% of the observations fall within 2 standard deviations of the mean,

that is, between - 2 and +2.

99.7% of the observations fall within 3 standard deviations of the mean,

that is, between - 3 and +3.

Thus, for a normal distribution, almost all values lie within 3 standard
deviations of the mean.
Table Lookup of a Standard
Normal Probability
P ( 0 Z 1) 0 . 3413

Z 0.00 0.01 0.02

0.000.0000 0.0040 0.0080

0.100.0398 0.0438 0.0478
0.200.0793 0.0832 0.0871

1.000.3413 0.3438 0.3461

1.100.3643 0.3665 0.3686

1.200.3849 0.3869 0.3888
-3 -2 -1 0 1 2 3
Applying the Z Formula

X is normallydistributed with = 485, and = 105

P(485 X 600) P(0 Z 1.10) .3643
ForX= 485, Z 0.00 0.01 0.02

X 485 485 0.000.0000 0.0040 0.0080

Z= 0 0.100.0398 0.0438 0.0478
105 1.000.3413 0.3438 0.3461
ForX = 600,
1.100.3643 0.3665 0.3686
X- 600 485
Z= 1.10 1.200.3849 0.3869 0.3888
105
Applying the Z Formula

X
is
normall
distrib
d= 494
wit
an
=
1
P
(
X
550
)P
(
Z
0.
56
).
7123
For
X=550
- 550
X 494
Z= 0
.56
100

0.5 + 0.2123 = 0.7123

Applying the Z Formula

X
is
normall
distrib
d with
=494
and
=
10
P
(
X
700
)P
(
Z
2.
06
).
0197
For
X=700
- 700
X 494
Z= 2
.06
100

0.5 0.4803 = 0.0197

 Applying the Z Formula

X
is
normall
distrib
dwith
=
494
and
=
10
P
(
300
X
)
600
P
(1
.
94
Z
1.
06
).
82
For X = 300
X - 300 494
Z= 1.94
100

For
X =600
X- 600
494
Z= 1
.06
100 0.4738+ 0.3554 = 0.8292

Copyright 2011 John Wiley & Sons, Inc. 33

Applying the Z Formula
X
is
normal
distrib
dwith
=
494
an
=
1
P
(
300
X
)
600
P
(1
.
94
Z
1.
06
).
82

For X = 300
X - 300 494
Z= 1.94
100
For
X=600
- 600
X 494
Z= 1
.06
100 0.4738+ 0.3554 = 0.8292
1. P(z 2.59)

2. P( z 2.59)

3. P( z 2.59)

4. P(0 z 2.59)

5. P( 1.1 z 2.59)

6. P( -1.1 z 2.59)
NORMAL DISTRIBUTION
Example:

The mean and SD of a normal random variable are 34.5 and

5.8 respectively. Find the following areas:

(i) to the left of 19.5

(ii) to the right of 40

(iii) between 19.5 and 40

NORMAL DISTRIBUTION
Solution:

(i) to the left of 19.5, i.e., P(x 19.5):

P( x 19.5) = P( z 2.59) = 0.0048

Where z=19.5-34.5/5.8= -2.59

(ii) to the right of 40, i.e., P(40 x ):

P(40 x )= P( 0.95 z ) = 1- 0.8289 = 0.1711

(iii) between 19.5 and 40, i.e., P(19.5 x 40):

P(19.5 x 40) = P( 2.59 z 0.95) = 0.8289 0.0048 = 0.8241

Normal distribution
NUMERICALS
 NUMERICALS 1 :

It was found that the mean length of 100 parts produced by a

lathe was 20.05 mm with a standard deviation of 0.02 mm.
Find the probability that a part selected at random would
have a length

(a) between 20.03 mm and 20.08 mm

(b) between 20.06 mm and 20.07 mm

(c) less than 20.01 mm

(d) greater than 20.09 mm.

 X = length of part

(a) 20.03 is 1 standard deviation below the mean;

20.08 is = 1.5 standard deviations above the mean.

P(20.03<X<20.08) = P(1<Z<1.5) = 0.3413+0.4332

=0.7745
So the probability is 0.7745.

(b) 20.06 is 0.5 standard deviations above the mean;

20.07 is 1 standard deviation above the mean

P(20.06<X<20.07) = P(0.5<Z<1) = 0.34130.1915

= 0.1498
So the probability is 0.1498.
(c)20.01is2s.d.(standarddeviations)belowthemean.

P(X < 20.01)

= P(Z < 2)

= 0.5 0.4792

= 0.0228

Sotheprobabilityis0.0228.

(d)20.09is2s.d.abovethemean,sotheanswerwillbethe
sameas(c),

P(X > 20.09)=0.0228.

 NUMERICALS 2 :
A company pays its employees an average wage
of $3.25 an hour with a standard deviation of 60 cents.
( 1 dollar = 100 cent )

If the wages are approximately normally distributed,

determine the proportion of the workers getting wages
between $2.75 and $3.69 an hour.
X = wage

Z1 = = 0.83333

Z2 = = 0.73333

So

P(2.75<X<3.69) = P(0.833<Z<0.733)

=0.298+0.268 = 0.566

So about 56.6% of the workers have wages between

$2.75 and $3.69 an hour.
 NUMERICALS 3 :

Tool workers are subjected to work related injuries. One disorder,

caused by strains to the hands and wrists, is called carpal tunnel
syndrome. It strikes as many as 23,000 workers per year. The US
Labor Department estimates that the average cost of this disorder to
employers are injurers is approximately $30,000 per injured worker.
Suppose these cost are normally distributed, with a standard
deviation of $9,000.
a. What proportion of the costs are between $15,000 and $45,000?
b. What proportion of the costs are greater than $50,000?
c. What proportion of the costs are between $5,000 and $20,000?
a. 0.9050

b. 0.0132

c. 0.1308
NUMERICALS 4 :

The lifetime of a battery is normally distributed with a

mean life of 40 hours and a standard deviation of 1.2
hours. Find the probability that a randomly selected
battery lasts longer than 42 hours.
 NUMERICALS 5 :

A placement company has conducted a written test to

recruit people in a software company. Assume that the
test marks are normally distributed with mean 120
and standard deviation 50. Calculate the following:

a) Probability of randomly obtaining scores greater than

200 in the test.

b) Probability of randomly obtaining scores that is 180 or

less.
c) Probability of randomly obtaining scores less than 80.

d) Probability of randomly obtaining scores between 70 to

170 for the exam.

e) Probability of randomly obtaining scores between 80 to

110.
 NUMERICALS 6 :

XYZ Trucking Company determined that the distance

travelled per truck per year is normally distributed, with a
mean of 50.0 thousand miles and standard deviations of
12.0 thousand miles.

a) What proportions of trucks can be expected to travel

between 34.0 and 50.0 thousand miles in the year?

b) What percentage of trucks can be expected to travel either

below 30.0 or above 60.0 thousand miles in the year?

c) What are your answers if the standard deviations is 10.0

thousand miles?
a) P(34 < X< 50) = P(-1.33 < Z< 0) = 0.4082

b) P( X<30) + P(X 60) = P( Z< -1.67)+ P(Z 0.83) =0.2508

c) The smaller deviation makes s the Z values larger.

P(34 < X< 50) = 0.4452

P( X<30) + P(X 60) = 0.1815

 Normal Approximation of Binomial Probabilities

When
When the the number
number of
of trials,
trials, n,
n, becomes
becomes large,
large, evaluating
evaluating
the
the binomial
binomial probability
probability function
function byby hand
hand or
or with
with aa calculator
calculator
isis difficult.
difficult.

The
The normal
normal probability
probability distribution
distribution provides
provides an
an
easy-to-use
easy-to-use approximation
approximation of of binomial
binomial probabilities
probabilities
where
where np
np >> 55 and
and n(1
n(1 -- p)
p) >> 5.
5.

In
In the
the definition
definition ofof the
the normal
normal curve,
curve, set
set
== np
np andand np (1 p )
Normal Approximation of Binomial Probabilities

Add and subtract a continuity correction factor (CCF)

because a continuous distribution is being used to
approximate a discrete distribution.

For example, P(x = 12) for the discrete binomial

probability distribution is approximated by
P(11.5 < x < 12.5) for the continuous normal
distribution.
Example

Suppose that a company has a history of making errors in

10% of its invoices. A sample of 100 invoices has been taken,
and we want to compute the probability that 12 invoices
contain errors.
In this case, we want to find the binomial probability of
12 successes in 100 trials. So, we set:
= np = 100(.1) = 10
np (1 p ) = [100(.1)(.9)] = 3
Normal Approximation to a Binomial Probability
Distribution with n = 100 and p = .1

=3
P(11.5 < x < 12.5)
(Probability
of 12 Errors)

x
= 10 12.5
11.5
Normal Approximation to a Binomial Probability
Distribution with n = 100 and p = .1

P(x < 12.5) = .2967

x
10 12.5
Normal Approximation to a Binomial Probability
Distribution with n = 100 and p = .1

P(x < 11.5) = .1915

x
10
11.5
Normal Approximation to a Binomial Probability
Distribution with n = 100 and p = .1

P(x = 12)
= .2967 - .1915
= .1052

x
10 12.5
11.5
NUMERICALS 7:

The international Data Corporation reports that Compaq is

number one in PC market share in the US with 25% of the
market. Suppose a researcher randomly selects 130 recent
purchasers of PCs.
a. What is the probability that more than 36 PC purchasers
bought a Compaq?
b. What is the probability that between 26 and 35
(inclusive) PC purchasers bought a Compaq?
c. What is the probability that fewer than 20 PC purchasers
bought a Compaq?
d. What is the probability that exactly 30 PC purchaser
bought a Compaq?
a. 0.2709
b. 0.6513
c. 0.0075
d. 0.0737