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The Normal Distribution

The document provides an overview of the normal distribution, including definitions of random variables, properties of the normal distribution, and the concept of skewness and kurtosis. It explains the significance of the mean and standard deviation in shaping the distribution curve, as well as methods to calculate skewness and kurtosis. Additionally, it covers the standard normal curve and techniques for finding areas under the curve.

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0% found this document useful (0 votes)
20 views46 pages

The Normal Distribution

The document provides an overview of the normal distribution, including definitions of random variables, properties of the normal distribution, and the concept of skewness and kurtosis. It explains the significance of the mean and standard deviation in shaping the distribution curve, as well as methods to calculate skewness and kurtosis. Additionally, it covers the standard normal curve and techniques for finding areas under the curve.

Uploaded by

donenggg0101
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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QUANTITATIV

E METHODS
The Normal
Distribution
Random Variables

 Discrete – can be assigned values


such as 0, 1, 2, 3,… and are said
be countable
 Continuous – can assume all
values between any two given
values of the variables
Continuous Variable

 Many of these have distributions


that are bell-shaped and are
called approximately normally
distributed variables
Normal distribution
Also known as the Gaussian
Distribution is a probability
distribution that is symmetric
about the mean, showing that
data near the mean are more
frequent in occurrence than data
far from the mean.
Normal distribution

Where
Normal distribution
The shape and position of the
normal distribution curve
depends on two parameters, the
mean and the standard deviation
Normal distribution
Each normally distributed
variable has its own normal
distribution curve, which
depends on the values of the
variable’s mean and standard
deviation.
Review about standard
deviation
The larger the standard
deviation, the more dispersed or
spread out the distribution
becomes
Properties of Normal
Distribution
1. The normal distribution curve is
bell-shaped
2. The mean, median and mode are
equal and located at the center of
the distribution.
3. The normal distribution curve is
unimodal.
Properties of Normal
Distribution
5. The curve is continuous.
6. The curve never touches the x-
axis.
7. The total area under the normal
distribution curve is equal to 1 or
100%.
Shape of a Normal Distribution

Mean
Median
Mode
Shapes of Distribution

1. Positively Skewed
Distribution
2. Symmetrical Distribution
3. Negatively Skewed
Distribution
Shapes of Distribution

Positively Skewed
Shapes of Distribution

1. Positively Skewed
Distribution
The majority of the data
values falls to the left of the
mean and clusters to the
lower end of the distribution
Shapes of Distribution

Mean
Median
Mode
Symmetrica
l
Shapes of Distribution
2. Symmetrical Skewed
Distribution
The data values are evenly
distributed on both sides of
the mean
Also, when the distribution is
unimodal, the mean, median
and mode are the same and
are at the center of the
Shapes of Distribution

Negatively Skewed
Shapes of Distribution
3. Negatively Skewed
Distribution
The majority of the data
values falls to the right of the
mean and clusters at the
upper end of the distribution
Coefficient of Skewness
Pearson coefficient of
A measure to determine the
skewness
skewness of a distribution
3 ( 𝑋 − 𝑀 𝑑)
𝑆𝐾 =
𝑠
Where
Coefficient of Skewness
3 ( 𝑋 − 𝑀 𝑑)
𝑆𝐾 =
𝑠
Note:
*When the distribution is symmetrical
the coefficient is zero.
*When the distribution is positively
skewed, the coefficient is positive
*When the distribution is negatively
skewed, the coefficient is negative.
Example:
Find the coefficient of skewness of a
distribution with mean 10, median 8
and standard deviation
3 ( 𝑋 − 3.
𝑀 𝑑)
𝑆𝐾 =
𝑠
3 (10 − 8)
𝑆𝐾 = =2
3
The distribution is positively skewed since
the value is 2.
Measure of Kurtosis
 It is used to describe the
property of curves through
the sharpness of its peak.
3 types of symmetrical curves
(Kurtosis)
1. The normal or mesokurtic
2. The leptokurtic curves
 Which are more peaked
3. The Platykurtic
 which are flat-topped
curves
3 types of symmetrical curves
(Kurtosis)
Formulas to compute the measure of
kurtosis
For ungrouped:

For grouped:
A distribution is said to be:
Mesokurtic if
Leptokurtic if
Platykurtic if
If the mean and the standard deviation
Class f
Limits
126 – 134 9 13 1170 17 83521 751689
0
117 – 125 28 12 3388 8 4096 114688
1
108 – 116 43 11 4816 -1 1 43
2
99 – 107 22 10 2266 -10 10000 220000
3
The Standard Normal
Curve
The Standard Normal
Curve
Is a normal distribution with a
mean of 0 and a standard
deviationFormula:
of 1.
The Standard Normal
Curve
Recall: All normally distributed variables
can be transformed into the standard
normally distributed variable by using the
formula for the standard score:
𝑣𝑎𝑙𝑢𝑒 −𝑚𝑒𝑎𝑛 𝑋 −𝜇
𝑧= 𝑜𝑟 𝑧 =
𝑠𝑡𝑎𝑛𝑑𝑎𝑑𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 𝜎
The Standard Normal
Curve

𝜇 =0
Finding areas under the standard
normal curve
Area under
standard
normal curve
between 0 and
Example: Determine the area under
the standard normal curve between 0
and 1.96.

0 1.9
6
Example: Determine the area under the
standard normal curve between 0 and 1.96.
Example: Determine the area under
the standard normal curve between 0
and 1.96.

0.4750 is the
area under the
0 1.9 standard
normal curve
6 between 0 and
Example: Determine the area under
the standard normal curve between
and 0

0.4750 is the
area under the
0 1.9 standard
normal curve
6 between 0 and
Example: Determine the area under
the standard normal curve between
and 0. Apply the fact that the
standard normal curve
is symmetric about 0.
0 1.5 By symmetry finding
3
the area between 0 and
is also the same with
finding the area
-
1.53
0
between and 0.
Example: Determine the area under
the standard normal curve between
and 0.

0 1.5
3

- 0
1.53
Example: Determine the area under
the standard normal curve between
and 0.
Area =
0.4370

0 1.5
3 Although the
Area =
0.4370 values can be
negative, areas
-
1.53
0
must be positive.
Example: Find the area under the
normal curve to the right of .
Sol. The area between and is 0.2611.
Example: Find the area under the
normal curve to the right of . Area to the
right of 0 is
0.5
Area =
0.2611

0 0.7
1

Area =
0.2389

0 0.71
Example: Find the area under the
normal curve to the left of .
Sol.The area between and is 0.04830.
Example: Find the area under the
normal curve to the left of .
Area to the
Area left of 0 is
=0.4830 0.5
- 0
2.1
2

Area =
0.0170

- 0
2.12
Example: Find the area under the
standard normal curve between and
Area = 0.8599-
0.5000

0 1.0
8

Area =0.5000-
0.0015
=0.4985

0 2.96
Thank You!

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