What Is Normal Distribution?
A normal distribution is a bell-shaped frequency distribution curve. Most of the data values in a normal
distribution tend to cluster around the mean. The further a data point is from the mean, the less likely it is
to occur.
Characteristics of Normal Distribution
It is perfectly symmetrical around its center.
It is uni-modal.
It is asymptotic
In normal distribution, mean, median and modes are all equal.
Application of Normal Distribution
Engineering
Medical Science
Business Administration
There are two principal applications of the applications of the
normal distribution to engineering and reliability. One application
deals with analysis of items which exhibit failure due to wear, such
as mechanical devices. Frequently the wear out failure distribution is
sufficiently close to normal that the use of this distribution for
predicting or assessing reliability is valid.
Another application is in the analysis of manufactured items and
their ability to meet specification. i.e Process Capability.
Blood pressure has a normal distribution: if you if you plot
values of systolic blood pressure on the x-axis and the
number of people with that blood pressure on the y-axis,
you get a bell-shaped curve as shown in this figure. The
mean corresponds to the peak of the curve. The standard
deviation measures how spread out the measurements are
around the mean: the blue curve has a small standard
deviation and the orange curve has a large standard
deviation.
The normal distribution has applications in many areas of
business administration, For Example.
Modern portfolio theory commonly assumes that the returns of diversified asset portfolio follow a
normal distribution.
In operations management, process variations often are normally distributed.
In human resource management, employee performance sometimes is considered to be
normally distributed.