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Normal Distribution: Empirical Rule The Normal Distribution is a continuous distribution. This is probably the most important probability distribution. Graphs of Normal Probability Distribution Properties of a normal curve 1. The curve is bell-shaped with highest point over the mean µ. 2. The curve is symmetrical about a vertical line through µ. 3. The curve approaches the horizontal axis but never touches or crosses it. 4. The inflection (transition) points between cupping up and down occur at µ - σ and µ + σ. 5. The total area under the curve is 1. The mean µ and standard deviation σ control the shape of the normal curve. The curves on the right show examples of normal curves of different height. The larger the value for σ, the fatter the curve will be. A normal curve with a very small standard deviation (σ) will appear to be very narrow. Applying Chebyshev’s Theorem to the normal distribution we get the Empirical Rule. For a distribution that is symmetrical and bell-shaped 1. Approximately 68% of the data values will lie within one standard deviation on each side of the mean. 2. Approximately 95% of the data values will lie within two standard deviation on each side of the mean. 3. Approximately 99.7% of the data values will lie within three standard deviation on each side of the mean. Examples showing the empirical rule: 1. The mean value of equipment from an inventory sample is µ = $1500 with a standard deviation σ = $200. The data set is a normal distribution. Estimate the percent of the equipment whose values are between $1300 and $1700. The interval is 1500 – 200 and 1500 + 200 which translates to µ - 1σ and µ + 1σ. Using the empirical rule, 68% of the equipment falls in this interval. 2. Using µ = $1500 with a standard deviation σ = $200, between what 2 values does 95 % of the values fall. From the empirical rule this would be µ - 2σ and µ + 2σ. The calculations would be 1500 – 2(200) and 1500 + 2(200) or $1100 and $1900. 3. Using µ = $1500 with a standard deviation σ = $200, between what 2 values does 99.7% of the values fall. From the empirical rule this would be µ - 3σ and µ + 3σ. The calculations would be 1500 – 3(200) and 1500 + 3(200) or $900 and $2100.