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Chapter 3 • The Normal Distributions Chapter outline • • • • • 1. Density curves 2. Normal distributions 3. The 68-95-99.7 rule 4. The standard normal distribution 5. Normal distribution calculations - 1: proportion? • 6. Normal distribution calculations - 2: zscore? Density curves • A density curve is a curve that – 1. is always on or above the x-axis – 2. Has area exactly 1 underneath it. Special Case : Normal curve A density curve describes the overall pattern of a distribution. Areas under the density curve represent proportions of the total number of observations. Density curves Density curves Density curves Density curves • Properties of density curve: – Median of a density curve: the equal-area point the point that divides the area under the curve in half. – Mean of a density curve: the balance point, at which the curve would balance if made of solid material. • Notation: mean ( ), standard deviation ( ), for a density curve. Density curves Normal distributions • Possible values vary from to • Notation: N ( , ) • A density curve – It is single peaked and bell-shaped. – It never hits x-axis. It is above x-axis. – Centered at . That is, determines the location of center. – Having spread around the mean Figure 3.7 (P.62) Two normal curves, showing the mean and standard deviation The 68-95-99.7 rule • For N ( , ) : • 1. 68% of the observations fall within of • 2. 95% of the observations fall within 2 of • 3. 99.7% of the observations fall within 3 of The 68-95-99.7 rule The 68-95-99.7 rule • Example 3.2 (P.63) The standard normal distribution • Mean=0, standard deviation =1 • Notation: N (0,1) • If x follows N ( , ) , x follows N (0,1) The standard normal distribution • Example 3.3 (P.65) • Example 3.4 (P.66) How to use Table A • To find a proportion: start with values on edges and find a value within the table • To find a z-score: start in the middle of table and read the edges. Normal distribution calculations 1: proportion? • By using Table A: areas under the curve of N(0,1) are provided. – – – – – 1. State in terms of N ( , ) 2. State the problem in terms of x 3. Standardize x in terms of z 4. Draw a picture to show the area we are interested in 5. Use Table A to find the required area • Area to the left? • Area to the right? • Area in between? Normal distribution calculations 1: proportion? • Example 3.5 (P.68) • Example 3.6 (P.69) • Example 3.7 (P.70) Normal distribution calculations 2: z-scores? • So far, we find a proportion using specific value(s) on x-axis. • Question: What if proportion is given and we want to find the specific value(s) on x-axis that give(s) given proportion? – – – – 1. State in terms of 2. State the problem in terms of z 3. Use Table A 4. Unstandardize from z to x (if needed) Normal distribution calculations 1: proportion? • Exercise 3.10 (P.70 ) • Exercise 3.20 (P. 75) Normal distribution calculations 2: z-scores? • Example 3.8 (P.72) • Exercise 3.12 (P.73)