So now, we will tackle about the STANDARD NORMAL DISTRIBU TION. So ano nga ba and standard normal distribution?

The STANDARD NORMAL DISTRIBUTION is a special type of normal distribution that has a MEAN of 0 and a STANDARD
DEVIATION of 1 ( μ=0∧σ=1). Because of this, the SND is always centered at 0and has intervals that increase by 1.

Each number on the horizontal axis corresponds to a Z-Score. A Z-Score tells us how many standard deviation and
observation is from the mean. For example, a Z-Score of -2 tells me that I am two standard deviation to the left of the
mean. And the Z-Score of 1.5 tells me that I am 1 and a half standard deviation to the right of mean. Most importantly, a
Z-Score allows us to calculate how much area does a specific Z-Score is associates with. And we can find that exact area
using the Z-Score table also known as the STANDARD NORMAL TABLE. This table tells us the total amount of area
contained to the left side of any value of Z. For the top row, the first column corresponds to Z-values. And all the
numbers in the middle corresponds to Areas.
So now, let’s take a look at this example.

The average weekly income of 3,000 workers is PhP1,810 with

standard deviation of PhP190. Assuming that the weekly incomes are

normally distributed, find the number of workers who earn:

a. from PhP1,300 to PhP2,100 per week.

b. less than or equal to PhP1,600 per week.

c. greater than or equal to PhP2,115 per week.

Before we solve this question in letter A, it’s always important to write down a bit important information. So we have a
MU ( μ) of 1,810 and a SIGMA (σ ) of 190. We are also looking for the proportion of workers between 1,300 and 2,100
(P1,300<x<2,100). This corresponds to the shaded area.

μ=1,810
σ =190
(P1,300<x<2,100)

1,300 2,100

To determine this area, we

need to standardize the distribution. So, we will use the standardization formula.

x−μ
Z= σ
But first, what is the benefit of standardization? The benefit of STANDARDIZATION is that it allows us to use the Z-score
of table to calculate exact areas for any given normally distributive population with any value of MU or SIGMA. This
formula says that the Z-score is equal to an observation (x) minus the population mean ( μ) divided by the population
standard deviation sigma (σ ).

If we were to draw this normal distribution, we would have 1,810 located at the center of the distribution because it is
the value of the mean and it’s interval will increase to 190 since it is the value of SD. To convert this distribution, we will
X−μ
use the formula Z= . The value of MU is 1,810 and the value of sigma is 190. We can then take each value of X
σ
x−μ 1,810−1,810
and plug it into the equation. If I plug in 1,810 I will get a value of 0 (Z= = =0 ). If I l plug in 1,430 I
σ 190
x−μ 1,6200−1,810
will get a value of -1 (Z= = =−1). If we do this for each value, you an see that we end up with the
σ 190
same values as the standard normal distribution.
Plugging in 1,300 to this formula gives us the Z-score of -2.68.

x−μ 1,300−1,810
Z= σ
=
190 = -2.68
And plugging in 2,100 to this formula gives us the Z-score of 1.53.
1,240 1,430 1,620 1,810 2,000 2,190 2,350 -3 -2 -1 0 1 2 3
x−μ 2,100−1810
-3 -2 -1 0 1 2 Z=
3
σ
=
190
=1.53
According to the STANDARD NORMAL TABLE, the Z-score -2.68 corresponds to an area 0.4963.

P(Z≤-2.68) = 0.4963
And the Z-score of 1.53 corresponds to an area of 0.4370

P(Z≤1.53)= 0.4370
To find the proportion value between -2.68 and 1.53, we must ADD the smaller area and the bigger area. So,
0.4962+0.4370= 0.9333

P(-2.68≤Z≤1.53)= 0.4963+0.4370= 0.9333

To determine the number of workers:

Number of workers = (0.9333) (3,000) = 2,800 workers.

Final answer: Therefore, there are 2,800 workers who earn from PhP1,300 to
PhP2,100 per week.

Let’s proceed to letter B problem.

b. less than or equal to PhP1,600 per week.

It’s always important to write down a bit important information. So we have a MU (μ) of 1,810 and a SIGMA (σ) of 190.
We are also looking for the proportion of workers P (X ≤ 1,600¿ . This corresponds to the shaded area.

1,600

Again, we will convert 1,600 into a

x−μ
standard score. We will use again the standardization formula Z=
σ
 x−μ 1,600−1810
After substituting 1,600 we end up to a value of -1.11 ( Z= = =−1.11). as a result, we will be looking
σ 190
for the proportion Z= less than negative 1.11 P (Z ≤-1.11). finally, we can use the Z-score to determine how much area is
associated with Z-Score. According to the table there’s an are of 0.3665 to the left of Z value. this means that the
proportion of -1.11 is 0.3665

To determine the number of workers:

Number of workers = (0.3665)(3,000) = 1,100 workers.

Final answer: Therefore, there are 1,100 workers who earn less than or equal to

PhP1,600 per week.

For the last problem letter C, greater than or equal to PhP2,115 per week.

x−μ
Again, we will convert 2,115 to a standard score by using the standardization formula Z= .
σ
x−μ 2,115−1810
Plugging in 2,115 to this formula gives us the Z-score of 1.61 (Z= = =1.61).
σ 190
Therefore, the unknown area is defined by P(Z ≥ 1.61). ). as a result, we will be looking for the proportion Z greater than
or equal to 1.61, P (Z≥1.61). finally, we can use the Z-score to determine how much area is associated with Z-Score.
According to the table there’s an are of 0.0537. this means that the proportion of 1.61 is 0.0537.

To determine the number of workers:

Number of workers = (0.0537)(3,000) = 161 workers.

Final answer: Therefore, there are 161 workers who earn greater than or equal to

PhP2,115 per week.