Normal Distribution


Normal Distribution

DEFINITION:

$X \sim N(\mu, \sigma)$ represents a normal distribution, where:

  • $\mu =$ mean
  • $\sigma =$ standard deviation

$P(X\ge x) = \Phi(z)$

\[\Phi(z) = \dfrac{1}{\sqrt{2\pi}} \int^z_{\infty} e^{\frac{-t^2}{2}} dt\]

Calculating z

DEFINITION:

$z = \dfrac{x - \mu}{\sigma} \quad$ where:

  • $x =$ individual value
  • $\mu =$ mean
  • $\sigma =$ standard deviation

Normal Distribution Table

Normal Distribution Table

Used with the z value that was shown how to be calculated above.

The Empiricals

  1. 68% of the data lies between $\pm 1\sigma$ of $\mu$

  2. 95% of the data lies between $\pm 2\sigma$ of $\mu$

  3. 99.7% of the data lies between $\pm 3\sigma$ of $\mu$

Hipothesis testing