1. What is Normal Distribution?
Normal Distribution is a continuous probability distribution that is symmetric around the mean.
It describes many natural phenomena, such as people's heights, exam scores, and errors in
measurement.
2. Characteristics of Normal Distribution:
The normal distribution has a bell-shaped curve that is symmetric around the mean (μ).
The mean, median, and mode are all equal in a perfectly normal distribution.
3. Probability Density Function (PDF):
The probability density function for a normal random variable X is given by:
( (x−μ¿
)
2
1
f (x)= exp −
√2 π σ 2
2 σ2
Where:
o μ= Mean of the distribution (center of the curve)
o σ = Standard deviation (spread of the curve)
o x = Random variable
4. Standard Normal Distribution:
A standard normal distribution is a special case where the mean μ=0and the standard
deviation σ =1.
The standard normal variable Z is given by:
X−μ
Z=
σ
Where:
o Z = Standard normal variable (Z-score)
o X = Original data point
o μ= Mean
o σ = Standard deviation
5. Key Properties of the Normal Curve:
Symmetry: The curve is symmetric around the mean, meaning the left and right halves are
mirror images.
Asymptotic to the X-axis: The tails of the normal curve approach but never touch the X-axis.
Area under the curve: The total area under the normal curve is 1, representing the total
probability.
o 68.26% of the area falls within ±1 standard deviation from the mean.
o 95.44% falls within ±2 standard deviations.
o 99.74% falls within ±3 standard deviations.
6. Z-Score:
Z-score represents how many standard deviations a data point X is from the mean μ. It’s
calculated using:
X−μ
Z=
σ
This formula helps standardize data points for comparison across different normal distributions.
7. Cumulative Distribution Function (CDF):
The Cumulative Distribution Function (CDF) gives the probability that the random variable X is
less than or equal to a certain value. It is calculated as:
P( X ≤ x)=
1
2 [ ( )]
1+erf
x−μ
σ √2
Where erf is the error function, which is used to compute probabilities for the normal distribution.
8. Important Areas under the Normal Curve:
The area under the normal curve is often used to determine probabilities. This can be found
using the Z-table or standard normal distribution tables.
o For example, the probability that Z is less than 1.0 is approximately 0.8413 (or 84.13%).
9. Additive Property of Normal Distribution:
If X and Y are independent random variables with normal distributions, then the sum X +Y will
also follow a normal distribution:
2 2
o If X ∼ N (μ1 , σ 1 )and Y ∼ N (μ2 , σ 2 ), then:
2 2
X +Y ∼ N (μ 1+ μ 2 , σ 1 +σ 2)
10. Applications of Normal Distribution:
Psychology and Education: Used to analyze test scores, IQ scores, and measurement errors.
Market Research: Predicting customer behavior (e.g., purchasing decisions).
Natural Phenomena: Describing physical measurements like height, weight, and blood pressure.
Quality Control: Determining the acceptance quality limit for manufactured goods.
11. Measures for Normal Distribution:
Mean (μ): The center of the distribution.
Standard Deviation (σ): A measure of how spread out the values are from the mean.
Skewness and Kurtosis: These are used to describe the shape of the distribution (normally
skewed and mesokurtic for the normal distribution).
12. Standard Normal Table (Z-Table):
The Z-table provides the area under the curve to the left of a given Z-score. The area
corresponds to the probability of the event X ≤ x .
Example: For a Z-score of 1.0, the probability is 0.8413.
Summary of Key Formulas:
1. Normal Distribution Formula (PDF):
f (x)=
1
√2 π σ 2 (
exp −
( x − μ ¿2
2σ
2 )
2. Standard Normal Distribution Formula (Z-Score):
X−μ
Z=
σ
3. Cumulative Distribution Function (CDF):
P( X ≤ x)=
1
2 [ ( )]
1+erf
x−μ
σ √2
4. Additive Property:
2 2
X +Y ∼ N (μ 1+ μ 2 , σ 1 +σ 2)