Normal frequency distribution: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Brianlenoach@hotmail.co.uk (Links.) |
imported>Doug Williamson (Layout.) |
||
| Line 27: | Line 27: | ||
==Other links== | ===Other links=== | ||
[http://www.treasurers.org/node/9214 Students: Perfect proportions, The Treasurer, July 2013] | [http://www.treasurers.org/node/9214 Students: Perfect proportions, The Treasurer, July 2013] | ||
[[Category:Financial_risk_management]] | [[Category:Financial_risk_management]] | ||
Revision as of 09:14, 11 May 2015
A normal frequency distribution is a theoretical continuous, symmetrical, bell-shaped distribution function. Its mean, mode and median are all the same; and both the tails of the bell curve are infinitely long.
Because of its symmetry, a normal frequency distribution can be described fully by its mean and its standard deviation.
Commonly abbreviated to normal distribution.
Simple normal distributions are frequently used for modelling uncertainty. However, reality is rarely so neat and symmetrical as the normal distribution model.
This can lead to spurious accuracy and a false sense of security from relying on models of that kind.
See also
- Binomial
- CertFMM
- Frequency distribution
- Kurtosis
- Leptokurtic frequency distribution
- Lognormal frequency distribution
- Mean
- Mode
- Median
- Standard deviation
- Standardised normal distribution
- Value at risk
