Normal Distribution


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Related to Normal Distribution: Poisson distribution, binomial distribution, Standard normal distribution

Normal Distribution

The well known bell shaped curve. According to the Central Limit Theorem, the probability density function of a large number of independent, identically distributed random numbers will approach the normal distribution. In the fractal family of distributions, the normal distribution only exists when alpha equals 2, or the Hurst exponent equals 0.50. Thus, the normal distribution is a special case which in time series analysis is quite rare. See: Alpha, Central Limit Theorem, Fractal Distribution.

Bell Curve

A curve on a chart in which most data points cluster around the median and become less frequent the farther they fall to either side of the median. When plotted on a chart, a bell curve looks roughly like a bell.
References in periodicals archive ?
While the normal distribution may not be realistic for all valuation situations, it does provide a beginning point in thinking about the probability distribution of value estimates.
Figure 5 depicts two screenshots of the sampling distribution of the mean for the normal distribution for 30 and 5000 samples of size 5.
To use a normal distribution in Excel, the formula would be = Mean + (Standard Deviation * Standard Normal Deviate).
We are unable to reject log normality for GDP and population for both times periods, while per capita GDP is statistically different from a log normal distribution, so we cannot decisively conclude whether a power law distribution would fit these variables.
The porosity distribution is not a large dispersion and has a normal distribution so there is no need to use the normalization methods.
These properties of the normal distribution are presented in Figure 1.
In a normal distribution, such an event should happen on just one trading day in every 1.
The normal distribution N was used for their evaluation.
The normal distribution plays a highly important role in many fields of knowledge and activity of the Mankind.