Normal Distribution

Normal Distribution
Normal Distribution
• A continuous random variable X is said to be normally distributed if
its density function is given by

• for - < x <  and for constants  and , where

• - <  <  , >0 and e2.71828 and   3.14159.

• Notation: If X follows the above distribution, we write X~ N(, 2 )

Normal Curve
• The graph of the normal distribution is called the normal curve

• The mean and standard deviation are the parameters of the normal
distribution which specify the form of the normal distribution
• Mean, (“mu”), is location parameter, whereas Standard deviation,
(“sigma”) is a scale parameter
Normal Curve
• Mean is center, location parameter
• Standard deviation is dispersion, scale parameter
• Greater the value of sigma, the wider the curve
• Conversely, less value of sigma, the narrower the curve
Normal Distribution: Properties
1. The curve is bell-shaped and symmetric about a vertical axis
through the mean .
2. The normal curve approaches the horizontal axis asymptotically as
we proceed in either direction away from the mean.
3. The total area under the curve and above the horizontal axis is
equal to 1.
Standard Normal Distribution
Standard Normal Distribution
• The distribution of a normal random variable with mean zero and
standard deviation equal to 1 is called a standard normal distribution

If X~ N(, 2 ) , then X can be transformed into a standard normal

random variable through the following transformation,
Standard Normal Distribution

• Mean is 0 and Standard deviation is 1

Standard Normal Distribution: Exercise
Suppose X~Normal (μ=5, σ2=4)

Find the Z value when

a. X = 6
b. X = 4.5
c. X = 3
Standard Normal Distribution: Exercise
a. X = 6
6−5
=0.5
2
b. X = 4.5
4.5−5
= - 0.25
2
c. X = 3
3−5
= -1
2
Standard Normal Table

• The total area under the curve and above the horizontal axis is 1.
• The mean of the standard normal distribution is zero.
• Since the normal curve is symmetric with respect to the mean,
• the area to the left of 0 is 0.5, i.e. P ( Z ≤ 0 ) = 0.5
• the area to the right of 0 is 0.5, i.e. P ( Z ≥ 0 ) = 0.5
Probabilities involving normal distribution: Areas
under the Z curve
• To calculate the probabilities involving normal distribution, we must
calculate the areas under the curve.
• To calculate the probability that Z lies within interval of Z1 to Z2, we
have to find the area under the standard normal Z-curve bounded by
the two ordinates z= z1 and Z2
Probabilities involving normal distribution:
Areas under the Z curve
Probabilities involving normal distribution:
Areas under the Z curve
The cumulative left-tail area of
value z for the standard normal
distribution is denoted by
P(Z<z)

The first column denotes first 2

digits of number z. The first
row denotes the
hundredths(2nd decimal) of
number z. The intersection of
row and column is the
cumulative left tail area of z
Exercise
1. P(Z<1.45)
2. P(Z>0.67)
3. P(-1.24<Z<2.08)
Exercise
1. P(Z<1.45)=0.9265
2. P(Z>0.67)=0.2514
3. P(-1.24<Z<2.08)=0.8737