Chapter 8

Normal distribution

24 January 2024

Statistics Spring Semester 2023-2024 1

 Probability Distributions of Continuous Variables

If a variable is continuous, between any two possible values of the

variable, there are an infinite number of other possible values, even
though we cannot distinguish some of them from one another in
practice.

Normal Probability Distribution

The normal distribution is the continuous distribution which is by far

the most used by engineers. However, a number of others are also used
very widely. Some are based on the normal distribution, and the
corresponding tests assume that the underlying population is at least
approximately normally distributed.

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 Normal Probability Distribution

The normal probability distribution or the normal curve is a bell

shaped (symmetric) curve. It is mean denoted by μ, and its
standard deviation by σ. A continuous random variable x that has
a normal distribution is called a normal random variable.

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Characteristics of Normal Probability Distribution
A normal probability distribution, when plotted, gives a bell
shaped curve such that:
1. The total area under a
normal distribution curve is
1.0, or 100%.

2. A normal distribution
curve is symmetric about the
mean. Consequently, 50% of
the total area under a normal
distribution curve lies on the
left side of the mean, and
50% lies on the right side of
the mean.
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Characteristics of Normal Probability Distribution
3. The tails of a normal distribution curve extend indefinitely
in both directions without touching or crossing the horizontal
axis.
Although a normal distribution curve never meets the
horizontal axis, beyond the points represented by μ - 3σ and
μ + 3σ it becomes so close to this axis that the area under the
curve beyond these points in both directions can be taken as
virtually zero.

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The mean, μ, and the standard deviation, σ, are the parameters of the
normal distribution. Given the values of these two parameters, we can
find the area under a normal distribution curve for any interval.
Remember, there is not just one normal distribution curve but a family of
normal distribution curves. Each different set of values of μ and σ gives a
different normal distribution. The value of μ determines the center of a
normal distribution curve on the horizontal axis, and the value of σ gives
the spread of the normal distribution curve.
The three normal distribution curves drawn in Figure A have the same
mean but different standard deviations.
By contrast, the three normal distribution curves in the Figure B have
different means but the same standard deviation.

A B

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 The Standard Normal Distribution

A simpler form in a single curve is obtained by a change of variable.

Let

Then z is a ratio between (x – μ) and σ . It represents the number of

standard deviations between any point and the mean. Since x, μ, and σ
all have the same units in any particular case, z is dimensionless.

The figure shows the normal

distribution in terms of z, the number
of standard deviations from the
mean. It can be seen that almost all
the area under the curve is between z
= –3 and z = +3. Therefore, the
practical width of the normal
distribution is about six standard
(Standard Normal Distribution)
deviations.
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 Using Tables for the Normal Distribution
Table 1 ( z-Table) gives values of the cumulative normal probability as a
function of z, the number of standard deviations from the mean. Part of
the Table is shown below.

The area to the left of z = 0.94

Area to the left of 0.94 = P(z < 0.94)
= 0.8264
Hence,
P(z < 0.94) = P(z ≤ 0.94) = 0.8264

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Example
Find the area under the standard normal curve to the left of z =1.95
Solution:By using (Table 1 Standard Normal Curve Areas) For z = 1.9 5

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The area to the left of z = 1.95 can be interpreted as the probability
that z assumes a value less than 1.95; that is,
Area to the left of 1.95 = P(z < 1.95) = 0.9744
Note: the probability that a continuous random variable assumes a
single value is zero. Therefore, P(z = 1.95) = 0
Hence,
P(z < 1.95) = P(z ≤ 1.95) = 0.9744

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Example
Find the area under the standard normal curve from z = -2.17 to z = 0.
Solution:By using (Table 1 Standard Normal Curve Areas)

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The area from z = -2.17 to z = 0 gives the probability that z lies in
the interval -2.17 to 0 as shown in the figure;

that is,
Area from -2.17 to 0 = P( - 2.17 ≤ z ≤ 0)
= P(z ≤ 0) - P(z ≤ -2.17) = 0.5000-.0150 = 0.4850

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 Example (Finding the areas in the right and left tails.)
Find the following areas under the standard normal curve.
(a) Area to the right of z = 2.32
(b) Area to the left of z = -1.54

Solution: By using (Table 1 Standard Normal Curve Areas)

(a) As mentioned earlier, the normal distribution table gives the area
to the left of a z value. To find the area to the right of z = 2.32, first
we find the area to the left of z = 2.32. Then we subtract this area
from 1.0, which is the total area under the curve.

From Table 1, the area

to the left of z = 2.32 is
0.9898.
Consequently, the required
area is
1.0 - 0.9898 = 0.0102

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(b) To find the area under the standard normal curve to the left of
z = -1.54, we find the area in Table 1 that corresponds to -1.5 in the z
column and 0.04 in the top row. This area is 0.0618

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 Example
Find the following probabilities for the standard normal curve.
(a) P(1.19 < z < 2.12) (b) P(-1.56 < z < 2.31) (c) P(z > -0.75)
Solution:
(a) From Table for the standard normal distribution, we find Area to
the left of 1.19 = 0.8830, and area to the left of 2.12 = 0.9830
Then,
the required probability is
P(1.19 < z < 2.12) = Area between 1.19 and 2.12
= 0.9830 - 0.8830 = 0.1000

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(b) P( -1.56 < z < 2.31) = Area between -1.56 and 2.31
= 0.9896 - 0.0594 = 0.9302

(c) From Table for the standard normal distribution.

Area to the left of - 0.75 = 0.2266 The required probability is
P(z > -0.75) = Area to the right of -0 .75
=1.0 - 0.2266 = 0.7734

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P(z < 0.5) = Area to the right of z= 0.5
= 0.6915
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 P(z < -1.5) = Area to the right of z= -1.5
= 0.0668

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P(z < 0) = 0.5, and P(z < 1.75) = 0.9599

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P(z < -1.75) = 0.0401, and P(z < 2.25) = 0.9878

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Example
According to a survey college students carried an average of $3173 debt
on their credit cards .Suppose that current credit card debts for all college
students have a normal distribution with a mean of $3173 and a standard
deviation of $800. Find the probability that credit card debt for a
randomly selected college student is between $2109 and $3605.
Solution:

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Z-scores and percentiles
Every Z-score is associated with a percentile. A Z-score of 0 is the 50th
percentile. This means that if you take any test that is normally distributed
(e.g., the SAT exam), and your Z-score on the test is 0, this means you scored
at the 50th percentile. In fact, your score is the mean, median, and mode.

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z = 1.44
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z = -1.64 or -1.65
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 Finding an x -Value for a Normal Distribution

For a normal curve, with known values of μ, σ, and area under the
curve to the left of z, the x value is calculated as:

x = μ + σ.z

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 z = -2.33

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The SAT is a standardized test widely used for college admissions in the
United States.

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 0.90

z = 1.28

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Example: Suppose that the average salary of college graduates is N.D. with
μ=$40,000 and σ=$10,000.

(a) What proportion of college graduates will earn $24,800 or less?

(b) What proportion of college graduates will earn $53,500 or more?
(c) What proportion of college graduates will earn between $45,000
and $57,000?
(d) Calculate the 80th percentile.
(e) Calculate the 27th percentile.
Solution: (a)
Convert the $24,800 to a Z-score:
Z = ($24,800 - $40,000)/$10,000 = -1.52.
From Z-table:
the area for (Z ≤ -1.52) = 0.0643
Answer: 6.43% of college graduates will earn less than $24,800.

(b) Answer: 8.85% (c) Answer: 26.39%

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(d) Calculate the 80th percentile.

Solution:
First, what Z-score is associated
with the 80th percentile?
A Z-score of approximately +.84 will give you area under curve=0.8.
Therefore, a Z-score of +.84 is associated with the 80th percentile.

Now to find the salary (X) at the 80th percentile:

Just solve for X: +.84 = (X−$40,000)/$10,000
X = $40,000 + $8,400 = $48,400.
(e) Answer: X = $33,900
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Example:
Suppose the life of a machine manufactured by a company has a
normal distribution with a mean of 80 months and a standard
deviation of 10 months. The company guarantees that a new one
will replace any machine damaged within 58 months of the
purchase. The company does not want to replace more than 2.5%
of all the machines?

a) Does the warranty period of 58 months meet the requirements of

the company?
b) What should the exact value of warranty period be to replace a
damaged machine if the company does not want to replace more
than 2.5% of all the machines?

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