NORMAL DISTRIBUTION

Normal distribution
f(x)
0.45

0.4

 A normal distribution 0.35

is a model for the 0.3

0.25
distribution of a 0.2

continuous variable. 0.15

0.1

0.05

 If our data’s spread 0

32 33 34 35 36 37 38 39
has the properties of
this distribution then
 A normal distribution is a two-
we say that “our data
parameter distribution, in the
follows a normal
mean and the variance .
distribution”, or that
Given a set of and , a unique
“our data are normally
normal distribution is specified.
distributed”.
2
Normal distribution
f(x)
0.45

0.4

0.35

0.3
 
0.25

0.2

0.15

0.1

0.05

0
32 33 34 35 36 37 38 39

 The normal distribution is Unimodal.

 Its mean = median = mode.
 The distribution is symmetric about the mean.
 Its range is: to .
3
 Normal distribution
AREA UNDER THE CURVE

32 33 34 35 36 37 38 39

𝟏 𝟐

 Probability that lies between and

 area under the curve between and .

4
 Normal distribution
AREA UNDER THE CURVE

32 33 34 35 36 37 38 39

 Probability that is less then

or equal to .
 This is the cumulative probability of , denoted by .
 5
 Normal distribution
AREA UNDER THE CURVE

32 33 34 35 36 37 38 39

𝟏 𝟐

 Hence, the probability that lies between and

6
 Normal distribution
AREA UNDER THE CURVE

f(x)
0.45

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
32 33 34 35 36 37 38 39

 Let, and .

o 68.27 % of the data lies between one standard deviation on either side of the mean.
o The probability that the variable takes a value between one standard deviation on
either side of the mean (between 35 and 37) is 0.6827.
7
 Normal distribution
AREA UNDER THE CURVE

f(x)
0.45

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
32 33 34 35 36 37 38 39

 Let, and .
 9545
o 95.45 % of the data lies between two standard deviations on either side of the
mean.
o The probability that the variable takes a value between two standard deviations
on either side of the mean (between 34 and 38) is 0.9545. 8
 Normal distribution
AREA UNDER THE CURVE

f(x)
0.45

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
32 33 34 35 36 37 38 39

 Let, and .
 9973
o 99.73 % of the data lies between three standard deviations on either side of the
mean.
o The probability that the variable takes a value between three standard deviations
on either side of the mean (between 33 and 39) is 0.9973. 9
 Normal distribution
AREA UNDER THE CURVE

 For any normal distribution regardless of its and ,

o
o 9545
o 9973
 In general for a variable following the normal distribution
, with regards to its and
.
 For example,
o Regardless
o of the data’s
o 9796 and
10
Standard normal distribution
f(x)
Transform x → z 0.45

0.4

0.35

0.3

0.25

0.2

0.15
It can be easily proved 0.1

that if then 0.05

.
0
32 33 34 35 36 37 38 39

z= -3 -2 -1 0 +1 +2 +3

 Any variable that follows a normal distribution with mean

and variance ,
 can be transformed to a variable z that follows a normal
distribution with mean 0 and variance 1.
The latter is called the standard normal distribution. 11
Standard normal distribution
f(x)
0.45

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
32 33 34 35 36 37 38 39

z= -3 -2 -1 0 +1 +2 +3

 For each = , a corresponding = exists.

 is the number of standard deviations ( ) that a

given point is away from its mean.
12
 Numerical example 1
 The time in hours (X) required to load an oceangoing vessel is
distributed as N(12, 4). Find the probability that the time taken
to load the vessel will be –
(a) < 10 hours
(b) between 10 and 12 hours
(c) greater than 15 hours.

In this example, and

13
 Numerical example 1

6 7 8 9 10 11 12 13 14 15 16 17
-2.75

-2.25

-1.75

-1.25

-0.75

-0.25

0.5

1.5

2.5
-2.5

-1.5

-0.5

2
-3

-2

-1

0.25

0.75

1.25

1.75

2.25

2.75
 What is the probability that the time to load is less than 10
hours?

To find F(10), we can use either the z-table or MS Excel.

In this example, and

14
Using the z-table
If , then

table

Hence, probability that it

will take less than 10
hours to load
 Numerical example 1

6 7 8 9 10 11 12 13 14 15 16 17
-2.75

-2.25

-1.75

-1.25

-0.75

-0.25

0.5

1.5

2.5
-2.5

-1.5

-0.5

2
-3

-2

-1

0.25

0.75

1.25

1.75

2.25

2.75
 What is the probability that the time to load is between 10
and 12 hours?

16
Using the z-table

table

Hence, probability that it will

take between 10 and 12
hours to load 3413
 Numerical example 1

6 7 8 9 10 11 12 13 14 15 16 17
-2.75

-2.25

-1.75

-1.25

-0.75

-0.25

0.5

1.5

2.5
-2.5

-1.5

-0.5

2
-3

-2

-1

0.25

0.75

1.25

1.75

2.25

2.75
 What is the probability that the time to load will be greater
than 15 hours?

18
Using the z-table

table

Hence, probability that it will

take more than 15 hours to
load = 0.0667