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Chapter 5 Applications of Normal Distributions

1. The document discusses applying the normal distribution formula to probability problems involving normal distributions. 2. Examples are provided to demonstrate computing normal probabilities and standard normal probabilities. This includes finding the probability of values falling within certain ranges. 3. Other applications discussed include finding the lowest possible test score to qualify for a program based on being in the top 20% and determining the appropriate average fill amount for cans to have less than 10% chance of being under a certain amount.

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leonessa jorban cortes
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874 views6 pages

Chapter 5 Applications of Normal Distributions

1. The document discusses applying the normal distribution formula to probability problems involving normal distributions. 2. Examples are provided to demonstrate computing normal probabilities and standard normal probabilities. This includes finding the probability of values falling within certain ranges. 3. Other applications discussed include finding the lowest possible test score to qualify for a program based on being in the top 20% and determining the appropriate average fill amount for cans to have less than 10% chance of being under a certain amount.

Uploaded by

leonessa jorban cortes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

Module STATISTICS AND PROBABILITY

CHAPTER 5: Applications of a Normal Distribution

Objective: At the end of the lesson, the students must be able to:

1. Convert a normal random variable, to a standard normal variable


and vice versa.

Now that we have discussed how to use Standardized Normal Distribution Table
in relation with the standard normal value formula, we will apply it to different probability
problems involving normal distributions.

Here is the formula,


𝑥−𝜇
𝑧=
𝜎
Where z= z value

x= the value of any particular observation or measurement

𝜇 = population mean

𝜎 = population standard deviation

The formula is used to gain information about an individual data values when the variables
are normally distributed

A. Computing a Normal Probability to a Standard Normal Probability

Example 1: The average Pag –ibig salary loan for a certain company employees is
Php23,000. If the debt is normally distributed with a standard deviation of Php2,500, find
the probability that the employee owes less than Php 18,500.

Solution:

Step 1: Draw the figure and represent the area.


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Module STATISTICS AND PROBABILITY

Step 2: Find the z value for Php 18,500. Apply the formula above.

𝑥 − 𝜇 18,500 − 23,500 −4,500


𝑧= = = = −1.80
𝜎 2,500 2,500
Step 3: Find the appropriate area. The area obtained is 0.4641 in the z table which
corresponds to the area between z = 0 and z= -1.80

Step 4: Subtract 0.4641 from 0.5000

𝑃(𝑥 < 18,500) = 𝑃(𝑧 < −1.80)

= 0.5000 − 𝑃(−1.80 < 𝑧 < 0)

= 0.5000 − 0.4641

= 0.0359

SKETCH:

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Module STATISTICS AND PROBABILITY

Example 2: The average age of bank managers is 40 years. Assume the variable is
normally distributed. If the standard deviation is 5 years, find the probability that the age
of the randomly selected bank manager will be in the range between 35 and 46 years old

Solution:

Step 1: Draw the figure that represent the area.

Step 2: Find the two values using the formula.


𝑥−𝜇 35−40 −5
𝑧= = = = −1.00
𝜎 5 5

𝑥−𝜇 46−40 6
𝑧= = = = 1.20
𝜎 5 5

Step 3: Find the appropriate area for z=-1.00 and z=1.20 in the z table of values.

-1.00 = 0.3413

1.20 = 0.3849

Step 4: Add 𝑃(−1.00 < 𝑧 < 0)𝑎𝑛𝑑 𝑃(0 < 𝑧 < 1.20)

𝑃(35 < 𝑥 < 46) = 𝑃(−1.00 < 𝑧 < 1.20)

= 𝑃(−1.00 < 𝑧 < 0) + 𝑃(0 < 𝑧 < 1.20)

= 0.3413 + 3849
3

= 0.7262
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Module STATISTICS AND PROBABILITY

SKETCH:

Other Applications of the Normal Distribution


Example 3:To qualify for a Master’s degree program in Business Administration at San
Sebastian College, candidates must score in the top 20% on a mental ability test. The
test has a mean of 180 and a standard deviation of 25. Find the lowest possible score to
qualify. Assume the test scores are normally distributed.

Solution: Take note the scores are normally distributed; the test value x that cut off the
upper 20% of the area under the normal distribution curve is desired. The area is shown
below.

Work backwards to solve this problem.

Step 1: Determine the area under the normal distribution between 180 and 0.
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0.5000 – 0.2000 = 0.3000


Module STATISTICS AND PROBABILITY

Step 2:Find the z value that corresponds to the area of 0.3000 by looking up 0.3000 in
the area portion in the z table. If the specific value cannot be found, use the closest value,
in this case 0.2995. The corresponding z score is 0.84.

𝑥−𝜇
Step 3:Substitute in the formula 𝑧 = and solve for x
𝜎

𝑥 − 180
0.84 =
25
0.84(25) + 180 = 𝑥

201 = 𝑥

A score of 201 should be used as a cut off. Any applicant scoring 201 or higher qualifies
for Master in Business Administration.

EXAMPLE 4: Suppose the Production Operation Manager at the canning plant for
evaporated milk is faced with a problem. Because of the designed machines, it generated
a standard deviation of 7 ml in the filling of evaporated milk, but the average ml per fill
can be adjusted. Under fear of the revocation of license to operate and penalty charges
by the Department of Trade and Industry, there is a maximum 10% chance od a 370 ml
can content less than 356 ml. What should the average be?

Step 1: Draw a figure and represent the area under the normal curve

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Module STATISTICS AND PROBABILITY

Step 2: Locate the area between 356 ml and 𝜇 = 370 ml in the standardized normal
distribution table. That is 0.4000.

The z value that corresponds to a probability of 0.4000 is approximately -1.28.

Step 3: Solve for 𝜇:


𝑥−𝜇
𝑧=
𝜎

356−𝜇
−1.28 =
7

−1.28(7) = 356 − 𝜇

−8.96 = 356 − 𝜇

𝜇 = 356 + 8.96 = 364.96

Thus, to have a probability of 10% or less of filling a can with less than356 ml, the average
fill should be 364.96 ml

Links for Learning:

Applications of the Normal Distributions

https://www.youtube.com/watch?v=R1XNpNrImfo

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