Chapter 6

The Normal
Distribution

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 1

Objectives

In this chapter, you learn:

 To compute probabilities from the normal distribution
 How to use the normal distribution to solve business
problems
 To use the normal probability plot to determine whether
a set of data is approximately normally distributed

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 2

Continuous Probability Distributions
 A continuous variable is a variable that can
assume any value on a continuum (can assume
an uncountable number of values)
 thickness of an item
 time required to complete a task
 temperature of a solution
 height, in inches
 These can potentially take on any value
depending only on the ability to precisely and
accurately measure

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 3

The Normal Distribution

 Bell Shaped
 Symmetrical
f(X)
 Mean, Median and Mode

are Equal
Location is determined by the σ
mean, μ X
Spread is determined by the μ
standard deviation, σ
Mean
= Median
The random variable has an = Mode
infinite theoretical range:
+  to  
Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 4
The Normal Distribution
Density Function

 The formula for the normal probability density function is

2
1  (X  μ) 
1  
2 

f(X)  e 

2π
Where e = the mathematical constant approximated by 2.71828
π = the mathematical constant approximated by 3.14159
μ = the population mean
σ = the population standard deviation
X = any value of the continuous variable

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 5

By varying the parameters μ and σ, we
obtain different normal distributions
A
B
C

A and B have the same mean but different standard deviations.

B and C have different means and different standard deviations.
Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 6
The Normal Distribution Shape

f(X) Changing μ shifts the

distribution left or right.

Changing σ increases
or decreases the
σ spread.

μ X

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 7

The Standardized Normal

 Any normal distribution (with any mean and

standard deviation combination) can be
transformed into the standardized normal
distribution (Z)

 To compute normal probabilities need to

transform X units into Z units

 The standardized normal distribution (Z) has a

mean of 0 and a standard deviation of 1

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 8

Translation to the Standardized
Normal Distribution

 Translate from X to the standardized normal

(the “Z” distribution) by subtracting the mean
of X and dividing by its standard deviation:

X μ
Z
σ
The Z distribution always has mean = 0 and
standard deviation = 1
Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 9
The Standardized Normal
Probability Density Function

 The formula for the standardized normal

probability density function is

1 (1/2)Z 2
f(Z)  e
2π

Where e = the mathematical constant approximated by 2.71828

π = the mathematical constant approximated by 3.14159
Z = any value of the standardized normal distribution

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 10

The Standardized
Normal Distribution

 Also known as the “Z” distribution

 Mean is 0
 Standard Deviation is 1
f(Z)

0 Z

Values above the mean have positive Z-values.

Values below the mean have negative Z-values.

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 11

Example

 If X is distributed normally with mean of $100

and standard deviation of $50, the Z value
for X = $200 is
X  μ $200  $100
Z   2.0
σ $50
 This says that X = $200 is two standard
deviations (2 increments of $50 units) above
the mean of $100.

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 12

Comparing X and Z units

$100 $200 $X (μ = $100, σ = $50)

0 2.0 Z (μ = 0, σ = 1)
Note that the shape of the distribution is the same,
only the scale has changed. We can express the
problem in the original units (X in dollars) or in
standardized units (Z)

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 13

Finding Normal Probabilities

Probability is measured by the area under

the curve
f(X)
P (a ≤ X ≤ b)
= P (a < X < b)
(Note that the probability
of any individual value is
zero)

a b X

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 14

Probability as
Area Under the Curve

The total area under the curve is 1.0, and the curve is
symmetric, so half is above the mean, half is below

f(X) P(   X  μ)  0.5
P(μ  X   )  0.5

0.5 0.5

μ X
P(   X   )  1.0
Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 15
The Standardized Normal Table

 The Cumulative Standardized Normal table in

the textbook (Appendix table E.2) gives the
probability less than a desired value of Z (i.e.,
from negative infinity to Z)

Example: 0.9772
P(Z < 2.00) = 0.9772

0 2.00 Z

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 16

The Standardized Normal Table
(continued)

The column gives the value of

Z to the second decimal point
Z 0.00 0.01 0.02 …

The row shows 0.0

the value of Z 0.1
. The value within the
to the first .
decimal point . table gives the
2.0 .9772 probability from Z =  
up to the desired Z value
2.0
P(Z < 2.00) = 0.9772

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 17

General Procedure for Finding
Normal Probabilities

To find P(a < X < b) when X is

distributed normally:
 Draw the normal curve for the problem in
terms of X

 Translate X-values to Z-values

 Use the Standardized Normal Table

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 18

Finding Normal Probabilities
 Let X represent the time it takes (in seconds) to
download an image file from the internet.
 Suppose X is normal with a mean of18.0
seconds and a standard deviation of 5.0
seconds. Find P(X < 18.6)

X
18.0
18.6
Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 19
Finding Normal Probabilities
(continued)
 Let X represent the time it takes, in seconds to download an image file from
the internet.
 Suppose X is normal with a mean of 18.0 seconds and a standard deviation
of 5.0 seconds. Find P(X < 18.6)

X  μ 18.6  18.0
Z   0.12
σ 5.0

μ = 18 μ=0
σ=5 σ=1

18 18.6 X 0 0.12 Z

P(X < 18.6) P(Z < 0.12)

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 20
Solution: Finding P(Z < 0.12)

Standardized Normal Probability P(X < 18.6)

Table (Portion) = P(Z < 0.12)
Z .00 .01 .02 0.5478
0.0 .5000 .5040 .5080

0.1 .5398 .5438 .5478

0.2 .5793 .5832 .5871
Z
0.00
0.3 .6179 .6217 .6255
0.12

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 21

Finding Normal
Upper Tail Probabilities

 Suppose X is normal with mean 18.0

and standard deviation 5.0.
 Now Find P(X > 18.6)

X
18.0
18.6
Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 22
Finding Normal
Upper Tail Probabilities
(continued)
 Now Find P(X > 18.6)…
P(X > 18.6) = P(Z > 0.12) = 1.0 - P(Z ≤ 0.12)
= 1.0 - 0.5478 = 0.4522

0.5478
1.000 1.0 - 0.5478
= 0.4522

Z Z
0 0
0.12 0.12
Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 23
Finding a Normal Probability
Between Two Values

 Suppose X is normal with mean 18.0 and

standard deviation 5.0. Find P(18 < X < 18.6)
Calculate Z-values:

X  μ 18  18
Z  0
σ 5
18 18.6 X
X  μ 18.6  18 0 0.12 Z
Z   0.12
σ 5 P(18 < X < 18.6)
= P(0 < Z < 0.12)

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 24

 Solution: Finding P(0 < Z < 0.12)

Standardized Normal Probability P(18 < X < 18.6)

Table (Portion) = P(0 < Z < 0.12)
= P(Z < 0.12) – P(Z ≤ 0)
Z .00 .01 .02 = 0.5478 - 0.5000 = 0.0478
0.0 .5000 .5040 .5080 0.0478
0.5000
0.1 .5398 .5438 .5478
0.2 .5793 .5832 .5871

0.3 .6179 .6217 .6255 Z

0.00
0.12
Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 25
Probabilities in the Lower Tail

 Suppose X is normal with mean 18.0

and standard deviation 5.0.
 Now Find P(17.4 < X < 18)

X
18.0
17.4

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 26

 Probabilities in the Lower Tail
(continued)

Now Find P(17.4 < X < 18)…

P(17.4 < X < 18)
= P(-0.12 < Z < 0) 0.0478
= P(Z < 0) – P(Z ≤ -0.12)
= 0.5000 - 0.4522 = 0.0478 0.4522

The Normal distribution is

symmetric, so this probability
17.4 18.0 X
is the same as P(0 < Z < 0.12) Z
-0.12 0

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 27

Empirical Rule

What can we say about the distribution of values

around the mean? For any normal distribution:

f(X)
μ ± 1σ encloses about
68.26% of X’s
σ σ

μ-1σ μ μ+1σ X

68.26%
Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 28
The Empirical Rule
(continued)

 μ ± 2σ covers about 95.44% of X’s

 μ ± 3σ covers about 99.73% of X’s

2σ 2σ 3σ 3σ
μ x μ x

95.44% 99.73%

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 29

Given a Normal Probability
Find the X Value

 Steps to find the X value for a known

probability:
1. Find the Z value for the known probability
2. Convert to X units using the formula:

X  μ  Zσ

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 30

Finding the X value for a Known
Probability (continued)

Example:
 Let X represent the time it takes (in seconds) to
download an image file from the internet.
 Suppose X is normal with mean 18.0 and standard
deviation 5.0
 Find X such that 20% of download times are less than
X.
0.2000

? 18.0 X
? 0 Z

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 31

 Find the Z value for
20% in the Lower Tail
1. Find the Z value for the known probability
 20% area in the lower
Standardized Normal Probability
Table (Portion) tail is consistent with a
Z value of -0.84
Z … .03 .04 .05
-0.9 … .1762 .1736 .1711
0.2000
-0.8 … .2033 .2005 .1977
-0.7 … .2327 .2296 .2266
? 18.0 X
-0.84 0 Z

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 32

Finding the X value

2. Convert to X units using the formula:

X  μ  Zσ
 18.0  (0.84)5.0
 13.8

So 20% of the values from a distribution

with mean 18.0 and standard deviation
5.0 are less than 13.80

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 33

Chapter Summary

In this chapter we discussed:

 Computing probabilities from the normal distribution
 Using the normal distribution to solve business
problems
 Using the normal probability plot to determine whether a
set of data is approximately normally distributed

Copyright © 2016 Pearson Education, Ltd. Chapter 6, Slide 34