A1.1 Data Distributions
A2 – Recursion and Financial Modelling
OA1 – Matrices
OA2 – Networks and Decision Mathematics
OA3 – Geometry and Measurement
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1.1.12 Normal Distribution and The 68-95-99.7% Rule

Overview of the Normal Distribution

  • The normal distribution appears often in population and natural distributions.
  • It is often referred to as the bell curve.
  • Normal distributions are assumed to be perfectly symmetric.

Note: this is not always the case in practice, but it is an accurate approximation.

  • A key characteristic of the normal distribution is that the mean and median are equal and correspond to the highest frequency

Note: as a result of this, either the mean or median can be used to measure the centre of the distribution.

  • The standard deviation is the appropriate measure of spread for a normal distribution.

The 68-95-99.7% Rule

  • A convenient characteristic of the normal distribution is that 68% of datapoint lie within one standard deviation of the centre (i.e. between the x-values of \bar{x}-s and \bar{x}+s ), 95% lie within 2 standard deviations of the centre, and 99.7% lie within 3 standard deviations of the centre.

Example: applying the 68-95-99.7% Rule

Assume the height of a group of people was measured and found to be normally distributed with a mean of 1.5m and standard deviation of 0.1m. The following normal distribution shows this model:

Picture 1

If we wanted to find the percentage of people with heights between 1.3m and 1.6m, we could do so by summing the percentage values of the encompassed regions (shaded below):

Picture 2

Thus, the percentage of people with heights between 1.3m and 1.6m is:

13.5+34+34=81.5 \%