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How to find out whether a numerical variable is a Normal (Bell-Shaped) Distribution or not Q: Why do we care? A: If Normal then empirical rule applies! Many stat tests and procedures assume Normality. Method A. Summary Measures (Data Analysis / Descriptive Statistics) - Almost Normal: Symmetric (Skewness within + 1) Not flat, not peaked (Kurtosis within + 1) - Skewed: Right Skewed (Skewness > 1) Left Skewed (Skewness < -1) - Peaked or Flat: Peaked (Kurtosis > 1 ) Flat (Kurtosis < -1) Method B. B-n-W (PHStat / Descriptive Statistics/Box-and-Whisker) This is ideal - Normal (must be both symmetric and not flat or peaked) Symmetric: Two Whiskers have same length (box is in the middle) RoT: less than 2x Median line divides the box in half RoT: less than 2x Not flat or peaked: Whiskers is slightly longer than box RoT: about 3 boxes fit - Skewed: If it not symmetric, then it’s NOT Normal. Right Skewed (longer right whisker and wider right box) Left Skewed (longer left whisker and wider left box) - Flat if box is too wide (could be symmetric) If it’s flat, it is not Normal even if it is symmetric - Peaked if box is too narrow (could be symmetric) If it’s peaked, it is not Normal even if it is symmetric Method C. Normal Probability Plot (PHStat/Probability and Prob. Distributions/Normal Probability Plot) The Normal Probability Plot Normal Probability Plot (continued) A normal probability plot for data from a normal distribution will be approximately linear: X (continued) Left-Skewed X 90 X 90 60 60 30 30 -2 -1 0 90 60 Right-Skewed 1 2 Z -2 -1 0 1 2 Z Nonlinear plots indicate a deviation from normality 30 -2 -1 Business Statistics, A First Course (4e) © 2006 Prentice-Hall, Inc. 0 1 2 Z Chap 6-38 Business Statistics, A First Course (4e) © 2006 Prentice-Hall, Inc. Chap 6-39