The Normal

Distribution

CHARACTERISTICS OF
NORMAL DISTRIBUTION
The entire family of normal probability distribution is
differentiated by its mean and standard deviation
The highest point on the normal curve is at mean which also
happens to be median and mode
The normal curve is symmetric and the tails of the curve extend
to infinity in both directions and do not touch the horizontal axis
The Standard deviation decides the width of the curve. Larger
the values, wider the curve i.e. indicates more variability

If X is a continuous random variable, then its probability

function f(x) also called Probability Density Function (pdf) must
satisfy two conditions: a) f(x) 0 and b) The total area under the
curve is 1.
So, The probability that a variable assumes value between a & b
is given by P(a X b) = Area (Density) under f(x) between a &
b

NORMAL PROBABILITY
DISTRIBUTION
Normal Probability Density function is given by:
f(x) = (1/2) e-(x-)2/22

Where = mean, = std. deviation

= 3.1416
e = 2.71828

STANDARD NORMAL
PROBABILITY DISTRIBUTION
f(z) = (1/2) e-z2/2
= 0, = 1 for a standard normal probability
distribution
The table is generated from this function and is
generally called as z-table (standard normal
probability distribution table).

STANDARD NORMAL
PROBABILITY DISTRIBUTION GENERALIZED
= 100
= 30
= 60
= 35

100 130

60

95

NORMAL PROBABILITY
DISTRIBUTION
The average amount parents spent on childrens
uniform of a particular school was Rs.600 with a
standard deviation of Rs.100.
a) What is the probability that amount spent on
randomly selected child is more than Rs.600?
b) What is the probability that amount spent on
randomly selected child is between Rs.600 &
Rs.750?

NORMAL PROBABILITY
DISTRIBUTION
c) What is the probability that a randomly
chosen student spends more than Rs.800?
d) What is the probability that a randomly
chosen student spends between Rs.650 and
Rs.750?
e) What is the probability that a randomly
chosen student lesser than Rs.670?
f) What is the probability that a randomly chosen
student spends between 520 and 680?

NORMAL PROBABILITY
DISTRIBUTION

g) If a students spend is so high that it falls in

the upper 10% of the spend, how much a student
must be spending in Rupees?

GREAR TIRE PROBLEM

Grear Tire Company has just developed a new steelbelted radial tire and has estimated the mean tire
mileage is = 36500 miles and s.d. = 5000 miles. What
is the probability that the tire mileage will exceed
40000?.
Assume that Grear is considering a guarantee that will
provide a discount on replacement tires if the original
tires do not exceed the mileage stated in the guarantee.
What should the guarantee mileage be if Grear wants no
more than 10% of the tires to be eligible for the discount
guarantee?.

INTERNET USAGE
In Jan, An average Indian spent an average of 77 hours
logged on to the Internet while at work. Assume the
times are normally distributed and that the standard
deviation is 20 hours.
a) What is the probability a randomly selected worker
spent fewer than 50 hrs logged on to the internet?
b) What % of workers spent more than 100 hrs logged
on to the internet?
c) A person is classified as heavy user if he/she is in the
upper 20% of usage. How many hrs to be spent to be
called so?

NORMAL APPROXIMATION OF
BINOMIAL PROBABILITIES
When

the number of trials become large, it is

difficult to use Binomial distribution.

When the number of trials 20, np 5 and nq

5, we can use normal distribution
approximation of binomial distribution

When

for

using normal distribution to approximate

binomial distribution, we use = np and = npq

NORMAL APPROXIMATION OF
BINOMIAL PROBABILITIES
ABC co. has a history of making errors in 10% of

its invoices. A sample of 100 invoices has been

taken, and we want to know the probability that
12 invoices will contain errors.

Continuity correction factor: Add and subtract 0.5

from the value.