Chapter 6

The Normal Distribution

and Other Continuous
Distributions
Objectives
 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.
 To compute probabilities from the uniform
distribution.
Online Topics
 Exponential Distribution: Section 6.5.

 Normal Approximation to the Binomial

Distribution: Section 6.6.
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.
Continuous Probability Distributions Vary
By Shape (Overview)

• Symmetrical • Symmetrical • Right skewed

• Bell-shaped • Also known as • Mean > Median
• Ranges from Rectangular • Ranges from
negative to Distribution zero to
positive infinity • Every value between positive infinity
the smallest & largest
is equally likely
Continuous Probability Distributions Vary
By Shape

• Symmetrical
• Bell-shaped
• Ranges from negative to positive infinity
Continuous Probability Distributions Vary
By Shape

• Symmetrical
• Also known as Rectangular Distribution
• Every value between the smallest & largest is equally
likely
Continuous Probability Distributions Vary
By Shape

• Right skewed
• Mean > Median
• Ranges from zero to positive infinity
 The Normal Distribution
 ‘Bell Shaped.’
 Symmetrical.
 Mean, Median and Mode are Equal.

 Location is determined by the mean, μ.

 Spread is determined by the standard deviation,
σ.
 The random variable has an infinite theoretical
range: - to +.
The Normal Distribution

f(X)

σ
X
μ

Mean

= Median = Mode
The Normal Distribution
Shape
Changing μ shifts the
distribution left or right.
f(X)

Changing σ increases
or decreases the
σ spread.

μ X
 By varying the parameters μ and σ, we obtain
different normal distributions

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

B and C have different means and different standard deviations.
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
 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.
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.
The Standardized Normal Distribution
 Also known as the “Z” distribution.
 Mean is 0.
 Standard Deviation is 1.
X μ
Z
f(Z) σ
1

0 Z

Values above the mean have positive Z-values.

Values below the mean have negative Z-values.
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
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.
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 of X or in standardized
units (Z).
 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
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
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
The Standardized Normal Table (continued)

The column gives the value of

Z to the second decimal point.
Z 0.00 0.01 0.02 …

0.0
The row shows
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
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.

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

a b X
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 of 18.0 seconds
and a standard deviation of 5.0 seconds. Find P(X
< 18.6).

X
18.0
18.6
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)

 Solution: Finding P(Z < 0.12)

Standardized Normal Probability

Table (Portion)

Z .00 .01 .02 P(X < 18.6)

= P(Z < 0.12)
0.0 .5000 .5040 .5080
0.5478
0.1 .5398 .5438 .5478
0.2 .5793 .5832 .5871

0.3 .6179 .6217 .6255

Z
0.00
0.12
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
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
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)
 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
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
17.4 18.0
Probabilities in the Lower Tail (continued)

Now Find P(17.4 < X < 18):

0.0478
P(17.4 < X < 18)
= P(-0.12 < Z < 0) 0.4522
= P(Z < 0) – P(Z ≤ -0.12)
= 0.5000 - 0.4522 = 0.0478
17.4 18.0 X
-0.12 0 Z

The Normal distribution is symmetric, so this probability is the

same as P(0 < Z < 0.12).
Empirical Rule

What can we say about the distribution of values

around the mean? For any normal distribution:

f(X)

μ ± 1σ covers about
68.26% of X’s.
σ σ

μ-1σ μ μ+1σ X
68.26%
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%
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
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
 Find the Z value for 20% in the Lower Tail
1. Find the Z value for the known probability

Standardized Normal Probability  20% area in the lower

Table (Portion) tail is consistent with a
Z … .03 .04 .05 Z value of -0.84.

-0.9 … .1762 .1736 .1711

0.2000
-0.8 … .2033 .2005 .1977
-0.7 … .2327 .2296 .2266
? 18.0 X
-0.84 0 Z
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.
Evaluating Normality

 Not all continuous distributions are normal.

 It is important to evaluate how well the data set is

approximated by a normal distribution.
Evaluating Normality
 Normally distributed data should approximate the
theoretical normal distribution:
 The normal distribution is bell shaped
(symmetrical) where the mean is equal to the
median.
 The empirical rule applies to the normal
distribution.
 The interquartile range of a normal distribution is
1.33 standard deviations.
Evaluating Normality (continued)
Comparing data characteristics to theoretical
properties:

 Construct charts or graphs:

 For small- or moderate-sized data sets, construct

a stem-and-leaf display or a boxplot to check for

symmetry.
 For large data sets, does the histogram or

polygon appear bell-shaped?

Evaluating Normality (continued)
Comparing data characteristics to theoretical
properties:

 Compute descriptive summary measures

 Do the mean, median and mode have similar

values?
 Is the interquartile range approximately 1.33σ?

 Is the range approximately 6σ?

Evaluating Normality (continued)
Comparing data characteristics to theoretical
properties:
 Observe the distribution of the data set:
 Do approximately 68.26% (2/3) of the
observations lie within mean ±1 standard
deviation?
 Do approximately 80% of the observations lie
within mean ±1.28 standard deviations?
 Do approximately 95% of the observations lie
within mean ±2 standard deviations?
Evaluating Normality (continued)
Comparing data characteristics to theoretical
properties:
Evaluate normal probability plot:
 Is the normal probability plot approximately
linear (i.e. a straight line) with positive slope?
X
90

60

30

-2 -1 0 1 2 Z
Constructing
A Normal Probability Plot
 Normal probability plot:
 Arrange data into ordered array.
 Find corresponding standardized normal quantile
values (Z).
 Plot the pairs of points with observed data
values (X) on the vertical axis and the
standardized normal quantile values (Z) on the
horizontal axis.
 Evaluate the plot for evidence of linearity.
The Normal Probability Plot
Interpretation
A normal probability plot for data from a normal
distribution will be approximately linear.

X
90

60

30

-2 -1 0 1 2 Z
Normal Probability Plot Interpretation (continued)

Nonlinear plots indicate a deviation from normality.

Left-Skewed Normal Right-Skewed

 The Uniform Distribution
 The uniform distribution is a probability
distribution that has equal probabilities for all
possible outcomes of the random variable.

 Also called a rectangular distribution.

The Uniform Distribution (continued)

The Continuous Uniform Distribution:

1
if a  X  b
ba
f(X) =

0 otherwise

where
f(X) = value of the density function at any X value
a = minimum value of X
b = maximum value of X
Properties of the Uniform Distribution

 The mean of a uniform distribution is:

ab
μ
2
 The standard deviation is:

2
(b - a)
σ
12
Uniform Distribution Example
Example: Uniform probability distribution
over the range 2 ≤ X ≤ 6:
1
f(X) = 6 - 2 = 0.25 for 2 ≤ X ≤ 6

f(X)
ab 26
μ  4
0.25 2 2
(b - a)2 (6 - 2)2
σ   1.1547
X 12 12
2 6
Uniform Distribution Example (continued)

Example: Using the uniform probability distribution

to find P(3 ≤ X ≤ 5):

P(3 ≤ X ≤ 5) = (Base)(Height) = (2)(0.25) = 0.5

f(X)
0.25

2 3 4 5 6 X
 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.
 Computing probabilities from the uniform distribution.