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The Standard Normal Distribution 1 The Standard Score The standard score, or z-score, represents the number of standard deviations a random variable x falls from the mean. 2 The Standard Normal Distribution The standard normal distribution has a mean of 0 and a standard deviation of 1. Using z-scores any normal distribution can be transformed into the standard normal distribution. –4 –3 –2 –1 0 1 3 2 3 4 z Cumulative Areas The total area under the curve is one. –3 –2 –1 0 1 2 3 z • The cumulative area is close to 0 for z-scores close to –3.49. • The cumulative area for z = 0 is 0.5000. • The cumulative area is close to 1 for z-scores close to 4 3.49. Cumulative Areas Find the cumulative area for a z-score of –1.25. 0.1056 –3 –2 –1 0 1 2 3 z Read down the z column on the left to z = –1.25 and across to the column under .05. The value in the cell is 0.1056, the cumulative area. The probability that z is at most –1.25 is 0.1056. 5 Finding Probabilities To find the probability that z is greater than a given value, subtract the cumulative area in the table from 1. Find P(z > –1.24). 0.1075 0.8925 z –3 –2 –1 0 1 2 3 The cumulative area (area to the left) is 0.1075. So the area to the right is 1 – 0.1075 = 0.8925. P(z > –1.24) = 0.8925 6 Finding Probabilities To find the probability z is between two given values, find the cumulative areas for each and subtract the smaller area from the larger. Find P(–1.25 < z < 1.17). –3 –2 –1 0 1 2 3 z 2. P(z < –1.25) = 0.1056 1. P(z < 1.17) = 0.8790 3. P(–1.25 < z < 1.17) = 0.8790 – 0.1056 = 0.7734 7 Summary To find the probability that z is less than a given value, read the corresponding cumulative area. -3 -2 -1 0 1 2 3 z To find the probability is greater than a given value, subtract the cumulative area in the table from 1. -3 -2 -1 0 1 2 3 z To find the probability z is between two given values, find the cumulative areas for each and subtract the smaller area from the 8 larger. -3 -2 -1 0 1 2 3 z Normal Distributions Finding Probabilities 9 Application Monthly utility bills in a certain city are normally distributed with a mean of $100 and a standard deviation of $12. A utility bill is randomly selected. Find the probability it is between $80 and $115. Normal Distribution P(80 < x < 115) P(–1.67 < z < 1.25) 0.8944 – 0.0475 = 0.8469 The probability a utility bill is between $80 and $115 is 0.8469. 10