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Standard Normal Variate (SNV) - Meaning & Definition

Published by MBA Skool Team in Operations and Supply Chain Terms Last Updated: November 12, 2023Read time:

What is Standard Normal Variate (SNV)?

A standard normal variate is a normal variate with mean µ=0 and standard deviation σ =1 with a probability density function is


The probability that the variate would take is denoted by the shaded area in the figure.The variate would take a value between 0 and z. This can be read from the table of areas under Standard Normal Curve. The area from 0 to z can be found to any corresponding z from this table. Let X is a normal variate with mean µ and standard deviation σ. Then Z=(X-µ)/σ is a Standard Normal Variate.Hence the Standard Normal Variate can be used to find the probability regarding X.

The expected value of a standard normal variable X is E[X]=0 and the variance is Var[X]=1. The characteristic function of a standard normal random variable X is: ϕX(t) = exp((-1/2)t2).

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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