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normal distribution
(redirected from Error Distribution)

   Also found in: Medical, Financial, Wikipedia, Hutchinson 0.04 sec.

normal distribution

In statistics, a frequency distribution in the shape of the classic bell curve. It accurately represents most variations in such attributes as height and weight. Any random variable with a normal distribution has a mean (see mean, median, and mode) and a standard deviation that indicates how much the data as a whole deviate from the mean. The standard deviation is smaller for data clustered closely around the mean value and larger for more dispersed data sets.


(statistics)normal distribution - (Or "Gaussian distribution") The frequency distribution of many natural phenomena such as the height or intelligence of people of a certain age and sex. The formula looks something like:

P(x) = e^(((x-m)/s)^2)

where P(x) is the probability of a measurement x, m is the mean value of x and s is the standard deviation.

Also known as a "bell curve" because of its shape.

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Statistics Centerlines TIGER Firm A Firm B Mean 219 351 300 461 Median 155 178 153 151 Standard deviation 272 604 602 2,330 Minimum 50 49 48 39 Maximum 2,302 4,379 5,565 2,596 90th percentile 211 271 238 218 95th percentile 227 302 255 237 95% RMSEa 196 306 235 210 (a) 95% RMSE is the root mean square error of the error distribution after removing 5% outliers.
The underlying principles of probability theory indicate that least-squares analysis is appropriate only if (i) the data points have an associated Gaussian error distribution and (ii) the proposed model is a complete representation of the observed data.
The Power EWMA estimator is based on the maximum likelihood estimator of the variance of the power exponential distribution (also known as the generalized error distribution, or Box-Tiao distribution).
 
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