Estimating the number of persons whose income falls within a specified range, such as Rs. 400 to Rs. 550 in a normal distribution, requires calculation of areas under the normal curve between these two limits. Given a mean income (Rs. 520) and a standard deviation (Rs. 60), we first find the z-scores for Rs. 400 and Rs. 550 using z = (X - μ) / σ. These z-scores help determine the proportion of the population within the range by identifying the area between them on a standard normal distribution curve. Using standard z-tables or statistical software, we obtain these proportions, which reflect the percentage of individuals within this income bracket. Multiplying this percentage by the total population size (10000) then yields the estimated count of persons, which is 6687 .

Z-scores provide a standard way to compare different data sets by normalizing values based on their respective means and standard deviations, allowing for direct comparisons across varied distributions. For example, to compare the heights of students (mean 66 inches, S.D. 2 inches) with worker wages (mean Rs. 70, S.D. Rs. 5), we convert specific observations to z-scores using z = (X - μ) / σ. This process standardizes different metrics, placing them on a comparable scale of standard deviation units. By transforming data into z-scores, individual observations can be assessed relative to their population, making cross-population or cross-variable comparisons coherent. This method is particularly useful for determining the rarity or typicalness of a data point within its source distribution, facilitating meaningful analyses across varied contexts .

In a normal distribution, the standard deviation measures the amount of variation or dispersion from the mean. A smaller standard deviation indicates that the data points are closer to the mean, whereas a larger standard deviation indicates that they are spread out over a larger range. This matters in estimating the number of workers earning between two wages because it affects the probability calculations of workers' wages falling within a specified interval. For example, with a mean wage of Rs. 70 and a standard deviation of Rs. 5, we estimate the number of workers earning between Rs. 70 and Rs. 72 by calculating the area under the normal curve between these values. The standard deviation helps determine this area, which corresponds to the percentage of workers within that wage range .

To calculate the expected number of students with heights between 63 and 69 inches in a normal distribution, we use the properties of the normal distribution curve. First, we calculate the z-scores for each height limit (63 and 69 inches) using the formula z = (X - μ) / σ, where X is the given height, μ is the mean height (66 inches), and σ is the standard deviation (2 inches). The z-scores will indicate the positions of these heights relative to the mean. Then, using standard normal distribution tables or a calculator, we determine the area under the curve between these z-scores. This area represents the proportion of students expected to have heights between 63 and 69 inches. For a total of 1000 students, multiplying the proportion by 1000 gives the expected number of students, which is 867 .

To calculate the mean and standard deviation from the given percentages, we first relate these percentages to their corresponding z-scores in a standard normal distribution. A z-score is a measure of how many standard deviations an element is from the mean. Since 10% obtained less than 40 marks, we assume a z-score of approximately -1.28. Likewise, for 15% obtaining more than 80 marks, the corresponding z-score is approximately 1.04. Setting up equations using these z-scores, we can solve simultaneously to find the mean (μ) and standard deviation (σ) using z = (X - μ) / σ. Solving the equations gives the mean at approximately 62.06 and the standard deviation at 17.25 .

To find the lowest income among the richest 1000 persons in a group of 10000, we need to determine the income threshold surpassing which individuals belong to the top 10% of the income distribution. Given the normal distribution with a mean of Rs. 520 and a standard deviation of Rs. 60, we first identify the z-score corresponding to the 90th percentile using standard normal distribution tables, which is approximately 1.28. The income corresponding to this z-score is then calculated using the formula: income = mean + (z-score * S.D.). Applying these values gives the lowest income of the richest 1000 persons as Rs. 596.8 .

To determine the percentage of students whose heights lie beyond a certain value in a normally distributed dataset, we identify the z-score for that height. Given a mean (e.g., 66 inches) and standard deviation (2 inches), we calculate the z-score using z = (X - μ) / σ, where X is the specified height. This z-score indicates how many standard deviations the height is from the mean. Next, using standard normal distribution tables or technology, we find the cumulative probability associated with the z-score, which gives the area under the curve up to that point. The complement of this cumulative probability (1 - cumulative probability) represents the percentage of students exceeding the specified height, capturing those lying in the upper tail beyond the given height. In practice, with a target of a height beyond which 10% lie, we find the height using inverse z-table lookups, resulting in 68.56 inches .

In a normal distribution, the percentage of a population earning less or more than certain income thresholds can be determined using the cumulative distribution function. This function illustrates how probabilities are distributed over ranges of values. For a given mean and standard deviation, each income threshold corresponds to a z-score, which signifies how many standard deviations an observation is from the mean. By converting income values into their respective z-scores and referencing standard normal distribution tables, we find the proportion of the population falling below or exceeding these thresholds. For instance, a mean income of Rs. 750 and a standard deviation of Rs. 50 allow us to show that about 51 individuals exceed incomes of Rs. 832, reflecting the top 5% of the group, and similarly, that about 95% earn above Rs. 668 .

The normal distribution is widely used as an approximation for real-world data analysis due to its mathematical properties and simplicity in modeling many natural phenomena. One significant strength is its ability to model the central tendency and spread of a dataset effectively, facilitating the computation of probabilities and predictions about a population. For instance, income, height, and test scores often exhibit features approximating a normal distribution, enabling analysts to predict outcomes or set benchmarks (like estimating income thresholds for top earnings). However, its limitations arise when data exhibit significant skewness or kurtosis, or when they have longer tails than the standard bell-curve shape. In such cases, reliance solely on the normal distribution can lead to inaccurate predictions or inferences. Therefore, while highly useful, the normal distribution should be applied with caution and supplemented with tests for normality and consideration of other statistical models, such as skewed or multi-modal distributions, where applicable .

Analyzing a company's income distribution to determine the income of the richest individuals involves understanding the cumulative distribution function of a normal distribution. Given a normal distribution with a mean and standard deviation (e.g., mean = Rs. 750 and S.D. = Rs. 50 for 1000 persons), we calculate the minimum income threshold for the richest 100 individuals. Since we want the highest 10% (top 100 of 1000), we find the z-score corresponding to the 90th percentile of the normal distribution using standard normal tables or a z-score calculator. The income associated with this z-score is calculated using the formula: income = mean + (z-score * S.D.). For this distribution, the lowest income among the richest 100 is Rs. 814 .