1-1

The Normal Probability Distribution

GOALS
When you have completed this chapter, you will be able to:

1. List the characteristics of the normal probability distribution.

2. Define and calculate z values.
3. Determine the probability that an observation will lie between two
points using the standard normal distribution.
4. Determine the probability that an observation will be above or below a
given value using the standard normal distribution.
5. Compare two or more observations that are on different probability
distributions.
6. Use the normal distribution to approximate the binomial probability
distribution.

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Characteristics of a Normal Probability Distribution

• The normal curve is bell-shaped and has a

single peak at the exact center of the
distribution.
• The arithmetic mean, median, and mode of the
distribution are equal and located at the peak.
• Half the area under the curve is above the
peak, and the other half is below it.

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Characteristics of a Normal Probability Distribution

• The normal probability distribution is

symmetrical about its mean.
• The normal probability distribution is
asymptotic - the curve gets closer and closer to
the x-axis but never actually touches it.

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 7-5 r a l i t r b u i o n :  = 0 ,  = 1

Characteristics of a Normal Distribution

0 . 4

Normal
curve is
0 . 3
symmetrical

0 . 2

Theoretically,
curve
f ( x

0 . 1
extends to
infinity

. 0

- 5
a
Mean, median, and
x

mode are equal

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999
7-6

The Standard Normal Probability Distribution

• A normal distribution with a mean of 0 and a

standard deviation of 1 is called the standard
normal distribution.
• Z value: The distance between a selected
value, designated X, and the population mean
, divided bythe population standard
deviation, 
X −
Z =

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7-7

EXAMPLE 1

• The monthly incomes of recent MBA graduates

in a large corporation are normally distributed
with a mean of P2000 and a standard deviation
of P200. What is the Z value for an income of
P2200? An income of P1700?

• For X=P2200, Z=(2200-2000)/200=1.

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7-8

EXAMPLE 1 continued

• For X=P1700, Z =(1700-2000)/200= -1.5

• A Z value of 1 indicates that the value of

P2200 is 1 standard deviation above the mean
of $2000, while a Z value of P1700 is -1.5
standard deviation below the mean of P2000.

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7-9

Areas Under the Normal Curve

• About 68 percent of the area under the normal

curve is within one standard deviation of the
mean.   1
• About 95 percent is within two standard
deviations of the mean.   2
• 99.74 percent is within three standard
deviations of the mean.   3

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 7-10  
Areas Under the Normal Curve
r a l i t r b u i o n : = 0 , = 1

0 . 4

Between:
1. 68.26%
0 . 3
2. 95.44%
3. 99.74%
0 . 2
f ( x

0 . 1

. 0

 − 2   + 2
- 5

 +1  + 3
x

 − 3  −1

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7-11

EXAMPLE 2

• The daily water usage per person in New

Providence, New Jersey is normally
distributed with a mean of 20 gallons and a
standard deviation of 5 gallons.
• About 68% of the daily water usage per
person in New Providence lies between what
two values?
•   1 = 20  1(5). That is, about 68% of the daily
water usage will lie between 15 and 25
gallons.
Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999
7-12

EXAMPLE 3

• What is the probability that a person from New

Providence selected at random will use less
than 20 gallons per day?
• The associated Z value is Z=(20-20)/5=0.
Thus, P(X<20)=P(Z<0) =.5
• What percent uses between 20 and 24 gallons?
• The Z value associated with X=20 is Z=0 and
with X=24, Z=(24-20)/5=.8. Thus,
P(20<X<24)=P(0<Z<.8)=28.81%

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 7-13 r a l i
EXAMPLE 3
t r b u i o n :  = 0 ,

0 . 4

0 . 3
P(0<Z<.8)
=.2881
0 . 2
f ( x

0<X<.8
0 . 1

. 0

- 5

-4 -3 -2 -1 x
0 1 2 3 4

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7-14

EXAMPLE 3 continued

• What percent of the population uses between

18 and 26 gallons?

• The Z value associated with X=18 is Z=(18-

20)/5= -.4, and for X=26,
Z=(26-20)/5=1.2. Thus P(18<X<26)
=P(-.4<Z<1.2)=.1554+.3849=.5403

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999

7-15

EXAMPLE 4

• Professor Mann has determined that the final

averages in his statistics course is normally
distributed with a mean of 72 and a standard
deviation of 5. He decides to assign his grades
for his current course such that the top 15% of
the students receive an A. What is the lowest
average a student can receive to earn an A?
• Let X be the lowest average. Find X such that
P(X >X)=.15. The corresponding Z value is
1.04. Thus we have (X-72)/5=1.04, or X=77.2

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 7-16 r a l i
EXAMPLE 4
t r b u i o n :  = 0 ,  = 1

0 . 4

0 . 3
Z=1.04

0 . 2
f ( x

0 . 1

. 0
15%
-

0 1 2 3 4

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999

7-17

EXAMPLE 5

• The amount of tip the servers in an exclusive

restaurant receive per shift is normally distributed
with a mean of $80 and a standard deviation of
$10. Shelli feels she has provided poor service if
her total tip for the shift is less than $65. What is
the probability she has provided poor service?
• Let X be the amount of tip. The Z value associated
with X=65 is Z = (65-80)/10=
-1.5. Thus P(X<65) = P(Z<-1.5)=.5-.4332=.0668.

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 Thank You!!!

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999