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.



Normal Distribution

Similar Matches

Dividend distribution

Dividend distribution

See: Dividend income


Skewed distribution

Skewed distribution

Probability distribution in which an unequal number of observations lie below (negative skew) or above (positive skew) the mean.


Frequency distribution

Frequency distribution

The organization of data to show how often certain values or ranges of values occur.


Probability distribution

Probability distribution

A function that describes all the values a random variable can take and the probability associated with each. Also called a probability function.


Secondary distribution or offering

Secondary distribution or offering

Public sale of previously issued securities held by large investors, usually corporations or institutions, as distinguished from a primary distribution, where the seller is the issuing corporation. The sale is handled off the NYSE, by a securities firm or a group of firms, and the shares are usually offered at a fixed price related to the current market price of the stock.


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