Introduction to Normal
Distribution
Normal distribution, also known as Gaussian distribution, is a continuous
probability distribution that is symmetric around the mean, showing that data
near the mean are more frequent in occurrence than data far from the mean.
by Dipti Pandey
Characteristics of Normal Distribution
Bell-shaped Curve 68-95-99.7 Rule Real-world Applications
Normal distribution is 68% of the data falls within
depicted by a bell-shaped one standard deviation from Normal distribution is
curve, with the mean, the mean, 95% within two observed in various natural
median, and mode all being standard deviations, and phenomena such as heights,
equal and located at the 99.7% within three standard blood pressure, and test
center. deviations. scores.
Standard Normal Distribution
1 Z-Scores 2 Probability Tables
Z-scores in standard normal Tables of the standard normal
distribution indicate the distance of a distribution are useful in finding the
data point from the mean in terms of probability of a value falling within a
standard deviations. specific range.
3 Transforming Data
Converting any normal distribution data to standard normal distribution assists in
comparison between different sets of data.
Z-Scores and Probability
68% 95% 99.7%
Within 1 SD Within 2 SD Within 3 SD
Applications of Normal Distribution
1 Quality Control
It's widely used in quality control to set acceptable ranges for product
specifications.
2 Finance
Used in financial modeling, risk assessment, and portfolio management.
3 Medical Sciences
It helps in analyzing biological and behavioral phenomena in populations.
Central Limit Theorem
Theorem Statement The sample mean of a sufficiently large
number of independent random variables
approaches a normal distribution.
Practical Use It is crucial in statistical inference, hypothesis
testing, and confidence intervals.
Confidence Intervals
Estimation Significance
Confidence intervals provide a range of They indicate the degree of uncertainty or
values in which a population parameter is variability associated with a statistical
likely to lie. estimate.
Research Applications
Widely used in research studies to draw conclusions about populations based on samples.
Hypothesis Testing
Formulate Hypothesis
Establish a null hypothesis (H0) and an alternative hypothesis (H1) for the study.
Conduct Test
Collect & analyze data to determine if there's enough evidence to reject the null
hypothesis.
Draw Conclusion
Based on the statistical evidence, either accept or reject the null hypothesis.