Mathematical Equation for the

normal distribution
The mathematical equation for the
normal distribution:



where
= population mean
= population standard deviation
( )
t o
o

2
2
2
2

=
x
e
y
Standard Normal Distribution
The standard normal distribution with
a mean of 0 and standard deviation of
1.
All normally distributed variables can
be transformed into the standard
normally distributed variable by using
the formula for the standard score:

o

=
x
z
Standard Normal Distribution
The mathematical equation for the
standard normal distribution:



t 2
2
2
z
e
y

=
( )
( )
( )
t
o
t o
t o
t o
o

2

1
2

z Substitute
2

2
2
2
2
2
2
2
1
2
1
2
1
2
z
z
x
x
x
e
e
e
e
y

|
.
|

\
|

=
=
=
=
=
=
Area Under The Normal
Curve
dx ) X P(
x
e
}
= < <

7
3
2 ) 2 (
2
) 2 ( 2
2
) 5 (
7 3
t
dz
Z P
)
- X- -
P( ) X P(
z
e
}
=
< < =
< < = < <

1
1
2
2
2
1

) 1 1 (
2
5 7
2
5
2
5 3
7 3
t
). 7 X P(3 Find , ) 2 , 5 ( ~
2
< < N X
6827 . 0 =
o
X-
= z using by on distributi normal standard Convert to
6827 . 0 =
Area Under The Normal
Curve
dx ) X P(
x
e
}
= < <

5 . 8
4
2 ) 3 (
2
) 3 ( 2
2
) 4 (
5 . 8 4
t
dz
Z P
)
- X- -
P( ) X P(
z
e
}
=
< < =
< < = < <

5 . 1
0
2
2
2
1

) 5 . 1 0 (
3
4 5 . 8
3
4
3
4 4
5 . 8 4
t
). 5 . 8 X P(4 Find , ) 3 , 4 ( ~
2
< < N X
4332 . 0 =
o
X-
= z using by on distributi normal standard Convert to
4332 . 0 =
The Empirical (Normal) Rule
The area under the normal curve that lies
within:
One standard deviation of the mean is around
68%.
Two standard deviation of the mean is around
95%.
Three standard deviation of the mean is around
99.7%.

The Empirical (Normal) Rule
3o 2o 1o +1o +2o +3o
68
95
99.7
Expectation for Discrete
Variable
The mean of the random variable of a
discrete probability distribution is

= ) (x xP

=
= =
=
) (
) ( ,
x xP
n
f
x P
n
f
x
n
f x

How to get this

formula???
Find the expectation if a person
bet RM1 on 4D Big.
Prize Category Prize Payout Gain or Lose
(x)
Probability
(P(x))
x * P(x)
1
st
Prize RM2,500 RM2,499 1 / 10000 0.2499
2
nd
Prize RM1,000 RM 999 1 / 10000 0.0999
3
rd
Prize RM 500 RM 499 1 / 10000 0.0499
10 Special Prize RM 180
each
RM 179
each
10 / 10000 0.1790
10 Consolation
Prizes
RM 60
each
RM 59
each
10 / 10000 0.0590
Nothing 0 -RM1 9977 /
10000
-0.9977
36 . 0
) 9977 . 0 ( 0590 . 0 1790 . 0 0499 . 0 0999 . 0 2499 . 0
) (
=
+ + + + + =
=

x xP
You will lose 36 cent for every RM1 you buy.
This means the more you buy, the more you could lose!
The more you buy, the more the 4D company gain.
For sure they want you to go for 4D.
1 Prove
2
2
2
1
=
}

dz
z
e
t
dy dx e
dy dx
e e
dy dx
y x
y x
y
e
x
e

2
1


2 2
) (
2
1
2
1
2
1
2 2
2 2
2
2
2
1
2
2
2
1
} }
=
} }
=
}

t
t t
t t
u
t
t
rdrd e
r
} }
=


0
2
1
2
2
0
2
1
u
u u
rdrd dxdy
r y r x
=
= = sin , cos
, Coordinate polar Using
( )
( )
1
1 0

2
1
let
0
0
0
2
0
2
1
2
=
=
=
=
}
=
=
=
}

e e
e
du e
rdr du
r u
rdr e
u
u
r
1
2
2
1
=
= t
t
u
t
t
d
}
=
2
0
1
2
1