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normal distribution |
Also found in: Medical, Financial, Wikipedia, Hutchinson | 0.03 sec. |
normal distributionIn 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. normal distribution [′nȯr·məl ‚di·strə′byü·shən] (statistics) A commonly occurring probability distribution that has the formwhereeis the mean and σ is the variance. Also known as Gauss' error curve; Gaussian distribution.
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Another risk relates to the lack of a normal distribution curve in hedge-fund returns. |
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