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Illustrating Normal Curve

This document discusses the normal distribution and normal random variables. It covers key characteristics like the bell curve shape, properties of the mean, standard deviation and Z-scores. It also discusses applications, assumptions and limitations of the normal distribution.

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Dan Moneva
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42 views11 pages

Illustrating Normal Curve

This document discusses the normal distribution and normal random variables. It covers key characteristics like the bell curve shape, properties of the mean, standard deviation and Z-scores. It also discusses applications, assumptions and limitations of the normal distribution.

Uploaded by

Dan Moneva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Understanding the Normal Random Variable

Introduction to Normal
Random Variable

● A normal random variable is associated


with the normal distribution, also known as
the Gaussian distribution.
● It is a continuous probability distribution
that is symmetric about the mean,
showing that data near the mean are
more frequent in occurrence than data far
from the mean.
● The shape of the normal distribution curve
is known as a "bell curve" due to its bell-
shaped appearance.
Characteristics of a
Normal Distribution

● The mean, median, and mode of a normal


distribution are all equal.
● The curve is symmetric at the center
(around the mean, μ).
● Approximately 68% of the data falls within
one standard deviation (σ) from the mean.
● Approximately 95% of the data falls within
two standard deviations from the mean.
● Approximately 99.7% of the data falls
within three standard deviations from the
mean.
Standard Normal Distribution
● A standard normal distribution is a special case of the normal
distribution with a mean of 0 and a standard deviation of 1.
● It is used to find probabilities and percentiles for normal random
variables.
● Any normal random variable can be transformed into a standard
normal variable using the Z-score formula.
Z-Scores and Normal
Distribution
● A Z-score measures how many standard
deviations an element is from the mean.
● The formula for calculating a Z-score is: Z
= (X - μ) / σ
● Z-scores can be used to compare different
data points from different normal
distributions.
Probability Density
Function (PDF)

● The PDF of a normal distribution


represents the probabilities of all possible
values of the random variable.
● The area under the curve of the PDF
between two points corresponds to the
probability of the variable falling within that
range.
● The total area under the curve is equal to
1, representing the total probability.
The Empirical Rule
● Also known as the 68-95-99.7 rule, it is a shorthand used to
remember the percentage of values that lie within a band around
the mean in a normal distribution.
● It helps in making quick estimates of the spread of data without
complex calculations.
Applications of Normal
Distribution
● Normal distribution is widely used in
understanding distributions of factors in
the population.
● Examples include IQ scores, blood
pressure readings, and standardized test
scores.
● It is also used in statistical quality control
and finance for various modeling
purposes.
Central Limit Theorem

● The Central Limit Theorem states that the


distribution of sample means
approximates a normal distribution as the
sample size gets larger, regardless of the
population's distribution.
● This theorem allows for the use of normal
probability to approximate the behavior of
sample means.
Assumptions of Normal Distribution
● The data should be continuous and measured on an interval or
ratio scale.
● The mean and variance are finite.
● The number of observations or sample size should be sufficiently
large for the Central Limit Theorem to hold true.
Limitations of Normal Distribution
● Not all data sets are normally distributed; using normal distribution on skewed
data can lead to incorrect conclusions.
● It assumes that extreme values (outliers) are extremely rare, which may not
be the case in real-world data.
● It is not suitable for distributions where the mean, median, and mode are not
equal or where the data is not symmetric.

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