# Normal Distribution

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## 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 ?
In contrast to the normal distribution curves shown in Figure 1b, the average and median values in Figure 2b are not equal because a significant part of the area under the curve is contributed by large values of x relatively far out on the right-hand tail.
c) Unlike the size distribution of columns with two plates at their bases (CP1a), which is well described by two normal distribution curves in Table 3, the size distribution of columns or bullets with one plate was characterized with one simple normal distribution curve.
Said he, "The fact that reading ability follows a normal distribution curve is quite well known.
In a Normal distribution curve, a data point that seems to be way off-outside the Normal distribution - is treated like an oddball, when, in fact, it fits in our distribution and is regarded as a reasonable occurrence.
The general shape of the distribution of real estate returns can be seen in Figure 1, which shows the normal distribution curve superimposed on histograms of actual returns.

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