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Understanding Normal Distribution Basics

Normal distribution is a continuous probability distribution characterized by its mean and standard deviation. In an example involving factory workers' wages, the mean wage is Rs 11.35 with a standard deviation of Rs 3.03, and the probability of workers earning between Rs 9 and Rs 17 is approximately 75%. The calculation utilizes the standard normal variable to determine the required probability.

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5 views2 pages

Understanding Normal Distribution Basics

Normal distribution is a continuous probability distribution characterized by its mean and standard deviation. In an example involving factory workers' wages, the mean wage is Rs 11.35 with a standard deviation of Rs 3.03, and the probability of workers earning between Rs 9 and Rs 17 is approximately 75%. The calculation utilizes the standard normal variable to determine the required probability.

Uploaded by

Shirsha
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

NORMAL DISTRIBUTION

Normal distribution is a continuous probability distribution and


it’s probability distribution function ( p.d.f) is defined as

Again if a random variable X is normally distributed with mean


µ and Sd , then
Z= X- µ /  is called Standard Normal variable and its p.d.f is
defined as

Example :

In a sample of 120 workers in a factory , the mean and sd of wages were


Rs 11.35 and Rs 3.03 respectively. Find the percentage of workers getting
wages between Rs 9 to 17 assuming that wages are normally distributed .
( Z = 0 to Z=0.78 = 0.2823 to 1.86 is 0.4686)
Solution :
Let X is a random variable follows normal distribution where µ= 11.35 and
 = 3.03
Required probability ,
P [ 9<X<17] = 0.7509 ( Solved below)
Now Z is standard normal variable where Z= (x- µ) /

Therefore, P [ 9<X<17] = P [ (9-11.35)/ 3.03 < Z < (17-11.35)/ 3.03]


= P [ -0.78 < z < 1.86] =  (1.86) -  (- 0.78)
= (0.5+ 0.4686) – [1- (0.5+.2823)]
=0.9686 -0.2177 = 0.7509 = 75% (Approx)

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