When and why do you use lognormal distribution or normal distribution for analyzing securities? Lognormal for stocks, normal for portfolio returns.

Spread the loveNormal distribution, also known as Gaussian distribution, is a fundamental concept in statistics that is used to describe the probability distribution of a continuous random variable.

Non-normal distributions have fatter tails than a bell curve (normal probability) distribution. A fatter tail skews negative signals to investors that there is a greater probability of negative ...

The normal distribution is a continuous probability distribution that is symmetrical, bell-shaped, and centred around its mean. It is one of the most important distributions in statistics because many ...

The normal distribution is widely used in probability theory and underlies much of statistical inference. The normal distribution is also called the "Gaussian distribution" or "bell curve". A normal ...

An Introduction to Bayesian Data Analysis for Cognitive Science, Vasishth, Nicenboim, Schad, to appear, CRC Press - vasishth/Intro_Bayes_CogSci ...

The normal distribution is the most important probability distribution in statistics because it fits many natural phenomena. For example, heights, blood pressure, measurement error, and IQ scores ...

The Normal Approximation to the Binomial Distribution If the probability that a randomly selected person will vote in the next election is 0.39, how would we find the probability that more than half ...