Statistical Inference For Managers

Week#6 Normal Distribution

Mr. Daniyal-ur-Rehman
 Week#6 Normal Distribution

• Unit 6.1: Continuous random variable-Example

• Unit 6.2: Normal Distribution-Graphically
• Unit 6.3: Standard Normal Distribution With properties
• Unit 6.4: Standard Normal Distribution-Example
 Continuous Random Variable
• Continuous Random Variable:
• Random variables that can assume values corresponding to any
of the points contained in an interval are called continuous.
Examples of Continuous Random Variable:
• A continuous random variable is a variable that can take on an infinite number of possible values within a
certain range or interval. This type of variable can be measured at any point along a continuum and can
take on any value within that range with some probability.
• For example, the height of a person is a continuous random variable. A person can be any height between,
say, 4 feet and 7 feet tall. There are an infinite number of possible heights within that range, and any
particular height within that range has some probability of occurring Continuous random variables are
often described using probability density functions (PDFs), which describe the relative likelihood of
different values occurring. The PDF for a continuous random variable must integrate to 1 over the entire
range of possible values.
 Continuous Random Variable

Some common examples of continuous random variables include measurements of

time, length, weight, temperature, and many others. These variables are often used in
statistical analysis to model real-world phenomena and make predictions based on
probability distributions.
 Continuous Random Variable
• Continuous Random Variable:
• The graphical form of the probability
distribution for continuous random
variable x is a smooth curve that
might appear as shown in Figure 5.1.
This curve, a function of x , is
denoted by the symbol f(x) and is
variously called a probability density
function, a frequency function, or a
probability distribution.
 Normal distribution
• Normal distribution, also known as Gaussian distribution, is a continuous probability
distribution that is widely used in statistical inference and modeling. It is a bell-shaped
distribution that is symmetric around its mean, and its shape is characterized by two
parameters: mean (μ) and standard deviation (σ).
The probability density function (PDF) of a normal distribution is given by:
f(x) = (1/√(2πσ²)) * e^(-(x-μ)²/(2σ²))
where e is the mathematical constant (approximately equal to 2.71828) and √ is the square root
symbol.
Some important properties of normal distribution are:
• It is symmetric around its mean, which is also the median and mode of the distribution.
• The total area under the curve is equal to 1.
• The inflection points, where the curvature changes, are located at x = μ ± σ.
• If X is a normally distributed random variable, then Z = (X - μ)/σ follows a standard normal
distribution with mean 0 and standard deviation 1.
Normal distribution
 Examples of Normal distribution

Here are some examples of real-world phenomena that actually

follow the normal distribution:
• weight
• Height of People
• IQ Scores
• Blood Pressure
• Shoe Size of babies
Standard Normal Distribution
 Use Normal Distribution
Problem: A certain type of battery has a mean lifespan of 2000 hours and a standard
deviation of 100 hours. If the lifespans of these batteries are normally distributed, what is
the probability that a randomly selected battery will last between 1900 and 2100 hours?
Solution:
Step 1: Standardize the values
To use the standard normal distribution, we need to standardize the values we're given by
subtracting the mean and dividing by the standard deviation. In this case, we have:
z1 = (1900 - 2000) / 100 = -1
z2 = (2100 - 2000) / 100 = 1
Step 2: Look up the values in the standard normal distribution table
We can now look up the probabilities associated with z scores of -1 and 1 in the standard
normal distribution table. The table tells us that the probability of getting a z score less than -
1 is 0.1587, and the probability of getting a z score less than 1 is 0.8413.
Step 3: Calculate the probability of the battery lasting between 1900 and 2100 hours

P(-1 < z < 1) = P(z < 1) - P(z < -1) = 0.8413 - 0.1587 = 0.6826
So the probability that a randomly selected battery will last between 1900 and 2100 hours is
0.6826 or 68.26%.
 Use Normal Distribution
• The mean height of 500 students is 151 cm and standard deviation is 15
cm. Assuming that the heights are normally distributed find how many
students have height between 120 and 155 cm ?
we first need to standardize the distribution by converting the height values
to z-scores. The formula for z-score is:
z = (x - μ) / σ
where x is the height value, μ is the mean height, and σ is the standard
deviation of height.
So for the given problem, we have:
z1 = (120 - 151) / 15 = -2.067 z2 = (155 - 151) / 15 = 0.267
Z-Table
Z-Table
 Use Normal Distribution
Next, we use a standard normal distribution table or calculator to find the area between
the two z-scores, which represents the probability of selecting a student with a height
between 120 cm and 155 cm. The area can be found by subtracting the area to the left
of the lower z-score from the area to the left of the higher z-score, as follows:
P(-2.067 < z < 0.267) = P(z < 0.267) - P(z < -2.067) = 0.6026 - 0.0197 = 0.5829
So the probability that a randomly selected student has a height between 120 cm and
155 cm is approximately 0.5829.
To find the number of students with heights in this range, we can multiply the probability
by the total number of students (500), as follows:
Number of students = Probability * Total number of students = 0.5829 * 500 = 291.45
So approximately 292 students have heights between 120 cm and 155 cm
 Properties Normal Distribution
• Symmetry: Normal distribution is symmetric about the mean. This means that the
probability density function of a normal distribution is the same on both sides of the mean.
For example, if we have a normal distribution with a mean of 50 and a standard deviation
of 10, the probability of getting a value less than 40 is the same as the probability of getting
a value greater than 60.
• Bell-shaped curve: Normal distribution is a bell-shaped curve, which means that
the majority of the observations are clustered around the mean and the
probability of getting values further away from the mean decreases rapidly as we
move away from the mean. For example, if we have a normal distribution with a
mean of 70 and a standard deviation of 5, the probability of getting a value
between 65 and 75 is higher than the probability of getting a value between 60
and 65 or between 75 and 80.
 Properties Normal Distribution
• Empirical rule: The empirical rule states that for a normal
distribution, approximately 68% of the values are within one
standard deviation of the mean, 95% of the values are within
two standard deviations of the mean, and 99.7% of the values
are within three standard deviations of the mean. For example,
if we have a normal distribution with a mean of 50 and a
standard deviation of 10, approximately 68% of the values will
be between 40 and 60, 95% of the values will be between 30
and 70, and 99.7% of the values will be between 20 and 80.
Properties of a Normal Probability Distribution
Effects of and on the Probability Density
Function of a Normal Random Variable
 Empirical Rule of Normal Distribution
Empirical Rule of Normal Distribution
• Most of the data are clustered around the center, while the more extreme values on either side of the
center become less rare as the distance from the center increases
• (About 68% of values lie within one standard deviation (σ) away from the mean;
• about 95% of the values lie within two standard deviations; and
• about 99.7% are within three standard deviations. This is known as the empirical rule or the 3-
sigma rule.
The Normal Distribution - Families
 Solving problem-Normal distribution
Steps-Normal distribution

(1) Write the given information

(2) Sketch a normal curve
(3) Convert x to a z score
(4) Find the appropriate value(s) in the table
(5) Complete the answer.
 Example#1 Normal Distribution

Fingerprint count
Total fingerprint ridge count in humans is
approximately normally distributed with mean
of 140 and standard deviation of 50.  Find the
probability that an individual picked at random
will have a ridge count less than 100.  We
follow the steps to find the solution.
 Example#1 Normal Distribution
(1) Write the given information
    m = 140
    s = 50
     x = 100
(2) Sketch a normal curve.
(3) Convert x to a z score.

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Table-Normal Distribution

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Example#2 Normal Distribution
Example#3 Normal Distribution
Thank you