Continuous probability distributions

Normal distribution
Standard normal distribution
Normal probability plot
Lognormal distribution
Fitting a lognormal distribution

Normal distribution
A random variable X with probability density
function
x
f ( x)

1
e
2

2 2

is a normal random variable with the following

V X 2, 0
E X ,
parameters

N , 2

And the notation

distribution

is used to denote the

Normal distribution
EXAMPLE
In MINITAB, plot the histogram of the following dataset
corresponding to the car battery lives recorded by the
manufacturing company. The batteries were guaranteed to
last three years.
1.6
1.9
2.2
2.5

2.6
2.6
2.9
3

3
3.1
3.1
3.1

3.1
3.2
3.2
3.2

3.3
3.3
3.3
3.4

3.4
3.4
3.5
3.5

3.6
3.7
3.7
3.7

a) What is the shape of the histogram?

3.8
3.8
3.9
3.9

4.1
4.1
4.2
4.3

4.4
4.5
4.7
4.7

Normal probability plot

The normal probability plot is a graphical method to
evaluate whether a particular variable is approximately
normally distributed.
Consider the following cumulative
probabilities from a normally
distributed dataset

The graph below plots the

cumulative probabilities in the
dataset for variable Z
a)

b)

Graph b) also shows cumulative

probabilities for variable Z, but
this time the Y axis has been
rearranged such that the S
shape in graph a) looks like a
straight line.
Graph b) is the normal
probability plot of the dataset
for variable Z

Normal distribution
EXAMPLE
The following dataset corresponding to the car battery lives
recorded by the manufacturing company. The batteries were
guaranteed to last three years.

1.6
1.9
2.2
2.5

2.6
2.6
2.9
3

3
3.1
3.1
3.1

3.1
3.2
3.2
3.2

3.3
3.3
3.3
3.4

3.4
3.4
3.5
3.5

3.6
3.7
3.7
3.7

3.8
3.8
3.9
3.9

4.1
4.1
4.2
4.3

4.4
4.5
4.7
4.7

a) In MINITAB, fit a normal distribution to the data.

b) What are the parameters of the normal distribution fitted
for the car battery lives?
c) In MINITAB, With the distribution fitted for the data, find P(X
< 3.5)

Standard normal distribution

If X is a normal random variable with E(X) = and V(X) = 2,
the random variable

X
Z

0,1 is
Z ~ N that
Is a normal random variable with E(Z)=0 and V(Z)=1,
Example. The fill volume of an automated filling machine used
for filling cans of carbonated beverage is normally distributed
with a mean of 12.4 fluid ounces and a standard deviation of
0.1 fluid ounce.
a) What is the probability a fill volume is less than 12 fluid
ounces?
b) If all cans less than 12.1 or greater than 12.6 ounces are
scrapped, what proportion of cans is scrapped?
c) Determine specifications that are symmetric about the

Lognormal distribution
Let X and Y be randomly distributed variables and Y=ln(X)
If Y is normally distributed, then X follows a lognormal
distribution.
EXAMPLE
A research was conducted on the operations at an auto repair
establishment. Data was collected on the time the mechanics
take in diagnosing the repairs that will be recommended to the
4
5
8
10
16
25
car owners (discovery
time):
3
6
8
17
19
27
6
5
5

6
8
9

14
10
13

15
19
15

15
20
29

29
32
36

a) What is the shape of the histogram?

b) Apply the logarithmic transformation to the data

Lognormal distribution
If Y=ln(X) has a normal distribution with mean and variance
2, then X follows a lognormal distribution with probability density
function

ln x 2

2 2

f x x 2 e

, elsewhere
0

E X e
Expected value and variance

, 0 x

V X e 2 e 1
2

Example. Consider the discovery time dataset in the previous

slide
a) Fit a lognormal distribution to the data
b) What is the probability of a discovery time of less than 10
minutes
c) What are the values for the first and second quartiles?