Normal Distribution

The Normal Distribution as an Approximation to

a Binomial Distribution
The Normal Distribution
Bell-shaped
Symmetrical
Area under curve = 1
X ~ N(,o

)




Mean
X
f(X)

Equation of a Normal Curve
e = base of natural logarithm approximated by
2.71828
= mean of r.v.
= standard deviation of r.v.
x = any value of the random variable

2
1
2
1
2
( )
x
f x e

o
o

| |
|
\ .

=
The Normal Distribution
Shape
X
f(X)


Changing shifts the
distribution left or right.
Changing increases
or decreases the
spread.
Shapes of Normal Distributions
By varying o and , we obtain different
normal distributions
There are an infinite number of normal distributions
Finding Probabilities
Probability is
the area under
the curve !
c d
X
f(X)
( )
2
1
2
1
2
d
c
x
P c X d dx e

o
o

| |
|
\ .

s s =
}
Which Normal Table to Use ?
An infinite number of normal distributions
means an infinite number of tables to look up!


~ N(0,1)

area tabulated
X
Z

= :
The Standard Normal Distribution
(z-distribution)
-1 0 1


Standardization of Normal Random
Variables
X
(1)
0

(2)
0

(3)
X
o
X
Equation of Standardized
Normal Curve
where
e = base of natural logarithm approximated by 2.71828
z = any value of the standardized normal r.v.
2
1
2
1
2
z
f z e
t

= ( )
Solution: The Cumulative
Standard Normal Distribution
Z .00 .01
0.0 .5000 .5040 .5080
.5398
.5438
0.2 .5793 .5832 .5871
0.3 .6179 .6217 .6255
.5478
.02
0.1
.5478
Cumulative Standard Normal
Distribution Table
Probabilities
Shaded Area
Exaggerated
Only One Table is Needed
Z = 0.12
0
Example
( )
6.2 P X s
( )
2
: ~ 5,10
6.2 5
( 6.2) ( 0.12) 0.5478
10
Given X N
X
P X P P Z

o

| |
s = s = s =
|
\ .
Normal Distribution
Standard
Normal Distribution
10 o =
1
Z
o =
5 =
6.2 X
Z
0
Z
=
0.12
( )
6.2 P X s Using EXCEL NORMDIST
Example:

Normal Distribution
Standard
Normal Distribution
10 o =
1
Z
o =
5 =
7.1
X
Z
0
Z
=
0.21
2.9 5 7.1 5
.21 .21
10 10
X X
Z Z

o o

= = = = = =
2.9
0.21
( )
2.9 7.1 P X s s
Z .00 .01
0.0 .5000 .5040 .5080
.5398
.5438
0.2 .5793 .5832 .5871
0.3 .6179 .6217 .6255
.5832
.02
0.1
.5478
Cumulative Standard
Normal Distribution Table
Z = 0.21
Example:

( )
2.9 7.1 2(.5832 .5) .1664 P X s s = =
(continued)
0
Example:

( )
8 P X >
Normal Distribution
Standard
Normal Distribution
10 o =
1
Z
o =
5 =
8
X
Z
0
Z
=
0.30
8 5
.30
10
X
Z

o

= = =
Example:

( )
8 1 .6179 .3821 P X > = =
(continued)
Z .00 .01
0.0 .5000 .5040 .5080
.5398
.5438
0.2 .5793 .5832 .5871
0.3 .6179 .6217 .6255
.6179
.02
0.1
.5478
Cumulative Standard Normal
Distribution Table
Shaded Area
Exaggerated
Z = 0.30
0
.6217
Finding Z Values
for Known Probabilities
Z .00 0.2
0.0 .5000 .5040 .5080
0.1 .5398 .5438
.5478
0.2 .5793 .5832 .5871
.6179 .6255
.01
0.3
Cumulative Standard Normal
Distribution Table
What is Z given
probability = 0.6217 ?
.6217
.31 Z =
0
Finding Z Values Using EXCEL
NORMINV
Recovering X Values
for Known Probabilities
( )( )
5 .30 10 8 X Z o = + = + =
Normal Distribution
Standard
Normal Distribution
10 o =
1
Z
o =
5 =
?
X
Z
0
Z
=
0.30
.3821
.3821
From
table
The Notation : Z
o
o
0
z
o is that value for which
the right tail has area
o