PHI


Calculates values for a standard normal distribution.

Syntax:

PHI(x)

The standard normal distribution is a normal distribution with mean μ = 0 and standard deviation σ = 1.

PHI calculates the probability density function of the standard normal distribution; in other words it returns NORMDIST(x, 0, 1, 0).

Example:

PHI(0.5)

returns approximately 0.35206.

NORMDIST(0.5, 0, 1, 0)

returns approximately 0.35206.


Application:

Quality Control of Coffee Bean Weight


A coffee company, "Aroma Roasters," packages its ground coffee into bags. The company's quality control department wants to ensure that the weight of each bag is within an acceptable range. They have found that the weight of the coffee in the bags is normally distributed with a mean (μ) of 500 grams and a standard deviation (σ) of 5 grams.


The company sets a standard that bags with weights below 495 grams are considered underweight and must be repackaged. They want to know what percentage of their bags are expected to be underweight.


Step 1: Standardize the value


To use the function, we first need to convert our value (495 grams) into a z-score. The z-score tells us how many standard deviations away from the mean a data point is. The formula for the z-score is:



Where:


  • x = the value we are interested in (495 grams)
  • μ = the mean (500 grams)
  • σ = the standard deviation (5 grams)



So, a bag weighing 495 grams is exactly one standard deviation below the mean.


Step 2: Use the PHI function to find the probability


The probability that a bag weighs less than 495 grams is the same as the probability that its z-score is less than -1.00. This is expressed using the function as (−1.00).


Standard Normal Distribution Table

Z-Score (x)

(x) Value (Cumulative Probability)

A
B
1
-2
0.053990967
2
-1.5
0.129517596
3
-1.25
0.182649085
4
-1
0.241970725
5
-0.75
0.301137432
6
-0.5
0.352065327
7
0
0.39894228

Conclusion: Based on the values you provided, the probability that a randomly selected bag of coffee is underweight (less than 495 grams) is 0.241970725. This means that Aroma Roasters can expect approximately 24.20% of their coffee bags to be underweight and require repackaging.





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