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Understanding Normal Distributions

The document discusses continuous probability distributions, focusing on the normal distribution, which is defined by its mean (μ) and standard deviation (σ). It explains the properties of the normal distribution, including the 68-95-99.7 rule, which describes the percentage of data within one, two, and three standard deviations from the mean. Additionally, it covers the standard normal distribution (Z) and methods to evaluate if data follows a normal distribution.

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prasanna joshi
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0% found this document useful (0 votes)
8 views22 pages

Understanding Normal Distributions

The document discusses continuous probability distributions, focusing on the normal distribution, which is defined by its mean (μ) and standard deviation (σ). It explains the properties of the normal distribution, including the 68-95-99.7 rule, which describes the percentage of data within one, two, and three standard deviations from the mean. Additionally, it covers the standard normal distribution (Z) and methods to evaluate if data follows a normal distribution.

Uploaded by

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

Examples of continuous

probability distributions:

The normal and standard


normal
The Normal Distribution

f(X) Changing μ shifts the


distribution left or
right.
Changing σ
increases or
σ decreases the
spread.

μ X
The Normal Distribution:
as mathematical function
(pdf)

1 x  2
1  (

)
f ( x)  e 2
 2
This is a bell shaped
Note constants: curve with different
=3.14159 centers and spreads
e=2.71828 depending on  and

The Normal PDF
It’s a probability function, so no matter what the
values of  and , must integrate to 1!
 1 x  2
1  ( )

 2
e 2  dx 1
Normal distribution is
defined by its mean and
standard dev.
 1 x  2
E(X)= = 1  ( )
x 
 2
e 2  dx

 1 x  2
1  ( )
Var(X)= =
2 ( 

x2
 2
e 2  dx)   2

Standard Deviation(X)=
**The beauty of the normal curve:

No matter what  and  are, the area between - and


+ is about 68%; the area between -2 and +2 is
about 95%; and the area between -3 and +3 is
about 99.7%. Almost all values fall within 3 standard
deviations.
68-95-99.7 Rule

68% of
the data

95% of the data

99.7% of the data


How good is rule for real data?

Check some example data:


The mean of the weight of the women = 127.8
The standard deviation (SD) = 15.5
68% of 120 = .68x120 = ~ 82 runners
In fact, 79 runners fall within 1-SD (15.5 lbs) of the mean.

112.3 127.8 143.3

25

20

P
e 15
r
c
e
n 10
t

0
80 90 100 110 120 130 140 150 160
POUNDS
95% of 120 = .95 x 120 = ~ 114 runners
In fact, 115 runners fall within 2-SD’s of the mean.

96.8 127.8 158.8

25

20

P
e 15
r
c
e
n 10
t

0
80 90 100 110 120 130 140 150 160
POUNDS
99.7% of 120 = .997 x 120 = 119.6 runners
In fact, all 120 runners fall within 3-SD’s of the
mean.

81.3 127.8 174.3

25

20

P
e 15
r
c
e
n 10
t

0
80 90 100 110 120 130 140 150 160
POUNDS
Example
 Suppose SAT scores roughly follows a normal
distribution in the U.S. population of college-
bound students (with range restricted to 200-
800), and the average math SAT is 500 with a
standard deviation of 50, then:
 68% of students will have scores between 450 and
550
 95% will be between 400 and 600
 99.7% will be between 350 and 650
The Standard Normal (Z):
“Universal Currency”
The formula for the standardized normal
probability density function is

1 Z 0 2 1
1  ( ) 1  ( Z )2
p( Z )  e 2 1
 e 2
(1) 2 2
The Standard Normal Distribution (Z)
All normal distributions can be converted into
the standard normal curve by subtracting the
mean and dividing by the standard deviation:
X
Z

Somebody calculated all the integrals for the standard


normal and put them in a table! So we never have to
integrate!
Even better, computers now do all the integration.
Comparing X and Z
units

100 200 X ( = 100,  = 50)

0 2.0 Z ( = 0,  = 1)
Example
 For example: What’s the probability of getting a math SAT score of 575 or less, =500 and =50?

575  500
Z 1.5
50
i.e., A score of 575 is 1.5 standard deviations above the mean
Practice problem
If birth weights in a population are
normally distributed with a mean of 109
oz and a standard deviation of 13 oz,
a. What is the chance of obtaining a birth
weight of 141 oz or heavier when
sampling birth records at random?
b. What is the chance of obtaining a birth
weight of 120 or lighter?
Answer
a. What is the chance of obtaining a birth
weight of 141 oz or heavier when
sampling birth records at random?
141  109
Z 2.46
13

From the chart or SAS  Z of 2.46 corresponds to a right tail (greater


than) area of: P(Z≥2.46) = 1-(.9931)= .0069 or .69 %
Answer
b. What is the chance of obtaining a birth
weight of 120 or lighter?
120  109
Z .85
13

From the chart or SAS  Z of .85 corresponds to a left tail area of:
P(Z≤.85) = .8023= 80.23%
Looking up probabilities in
the standard normal table
What is the area to
the left of Z=1.51 in
a standard normal
curve?

Area is 93.45%
Z=1.51

Z=1.51
Are my data “normal”?
 Not all continuous random
variables are normally distributed!!
 It is important to evaluate how well
the data are approximated by a
normal distribution
Are my data normally
distributed?
1. Look at the histogram! Does it appear bell
shaped?
2. Compute descriptive summary measures—
are mean, median, and mode similar?
3. Do 2/3 of observations lie within 1 std dev of
the mean? Do 95% of observations lie within
2 std dev of the mean?
4. Look at a normal probability plot—is it
approximately linear?
5. Run tests of normality (such as Kolmogorov-
Smirnov). But, be cautious, highly influenced
by sample size!

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