What is STATISTICS?

The study of statistics involves math

and relies upon calculations of numbers. But
it also relies heavily on how the numbers are
chosen and how the statistics are interpreted.
In the broadest sense, "statistics"
refers to a range of techniques and
procedures for analyzing, interpreting,
displaying, and making decisions based
on data.
What are the Importance of Statistics?

Statistics provides tools that you need in order to react

intelligently to information you hear or read. In this sense,
statistics is one of the most important things that you can
study.
Statistics are often presented in an effort to add
credibility to an argument or advice. You can see this by
paying attention to television advertisements.
NORMAL DISTRIBUTION

It is sometimes called the

"bell curve," although the tonal
qualities of such a bell would be
less than pleasing. It is also called
the "Gaussian curve" after the
mathematician Karl Friedrich
Gauss.

Normal distributions can

differ in their means and in their
standard deviations.

Figure 1. Normal distributions differing
in mean and standard deviation.
Figure 1 shows three normal
distributions. The green (left-most)
distribution has a mean of -3 and a
standard deviation of 0.5, the
distribution in red (the middle
distribution) has a mean of 0 and a
standard deviation of 1, and the
distribution in black (right-most) has
a mean of 2 and a standard
deviation of 3.
These as well as all other
normal distributions are symmetric
with relatively more values at the
center of the distribution and
relatively few in the tails.
Seven features of normal distributions are listed below. These features are
illustrated in more detail in the remaining sections of this chapter.

1. Normal distributions are symmetric around their mean.

2. The mean, median, and mode of a normal distribution are equal.

3. The area under the normal curve is equal to 1.0.

4. Normal distributions are denser in the center and less dense in the tails.

5. Normal distributions are defined by two parameters, the mean (μ) and

the standard deviation (σ).

6. 68% of the area of a normal distribution is within one standard deviation

of the mean.

7. Approximately 95% of the area of a normal distribution is within two

standard deviations of the mean.

What is a Z-Score?

Simply put, a z-score is the number

of standard deviations from the mean a
data point is. But more technically it’s a
measure of how many standard deviations
below or above the population mean a raw
score is.

A z-score is also known as

a standard score and it can be placed on
a normal distribution curve. Z-scores range
from -3 standard deviations (which would
fall to the far left of the normal distribution
curve) up to +3 standard deviations (which
would fall to the far right of the normal
distribution curve). In order to use a z-
score, you need to know the mean μ and
also the population standard deviation σ.
The Z Score Formula: One Sample
The basic z score formula for a sample is:
z = (x – μ) / σ
For example, let’s say you have a test score of 190. The test has a mean
(μ) of 150 and a standard deviation (σ) of 25. Assuming a normal distribution,
your z score would be:
z = (x – μ) / σ
= 190 – 150 / 25 = 1.6.
The z score tells you how many standard deviations from the mean your
score is. In this example, your score is 1.6 standard deviations above the mean.

You may also see the z score formula shown to the left. This is exactly the
same formula as z = x – μ / σ, except that x̄ (the sample mean) is used instead of
μ (the population mean) and s (the sample standard deviation) is used instead of
σ (the population standard deviation). However, the steps for solving it are
exactly the same.
How to Calculate a Z-Score
Sample question: You take the SAT and score 1100.
The mean score for the SAT is 1026 and the standard deviation
is 209. How well did you score on the test compared to the
average test taker?

Step 1: Write your X-value into the z-score equation.

For this sample question the X-value is your SAT score, 1100.
Step 2: Put the mean, μ, into the z-score equation.
Step 3: Write the standard deviation, σ into the z-
score equation.
Step 4: Calculate the answer using a calculator:
(1100 – 1026) / 209 = .354. This means that your score
was .354 standard devs above the mean.
Step 5: (Optional) Look up your z-value in the z-
table to see what percentage of test-takers scored below you.
A z-score of .354 is .1368 + .5000* = .6368 or 63.68%.
*Why add .500 to the result? The z-table shown has scores for the RIGHT of the
mean. Therefore, we have to add .500 for all of the area LEFT of the mean.
PROBLEMS
Problems
1. Entry to a certain University is determined by a national test.
The scores on this test are normally distributed with a mean of 500 and
a standard deviation of 100. Tom wants to be admitted to this
university and he knows that he must score better than at least 70% of
the students who took the test. Tom takes the test and scores 585. Will
he be admitted to this university?

2. The length of life of an instrument produced by a machine has

a normal distribution with a mean of 12 months and standard deviation
of 2 months. Find the probability that an instrument produced by this
machine will last
a) less than 7 months.
b) between 7 and 12 months.
ANSWERS
 1. Let x be the random variable that represents the scores. x is normally
distributed with a mean of 500 and a standard deviation of 100. The total area
under the normal curve represents the total number of students who took the
test. If we multiply the values of the areas under the curve by 100, we obtain
percentages.

For x = 585 , z = (585 - 500) / 100 = 0.85

The proportion P of students who scored below 585 is given by
P = [area to the left of z = 0.85] = 0.8023 = 80.23%
Tom scored better than 80.23% of the students who took the test and he
will be admitted to this University.

2. a) P(x < 7) = P(z < -2.5)

= 0.0062
b) P(7 < x < 12) = P(-2.5 < z < 0)
= 0.4938