The tails of the bell curve extend on both sides of the chart (+/-) without limits. The possible outcomes of the function are given in terms of whole real numbers lying between -∞ to +∞. You are free to use this image on your website, templates etc, Please provide us with an attribution link How to Provide Attribution? Article Link to be Hyperlinked The following figure shows that the statistical probability function is a bell-shaped curve that follows the empirical rule: This probability method plays a crucial role in asset return calculation and risk management strategy decisions. It has two key parameters: the mean (µ) and the standard deviation (σ). The mean (µ) and the standard deviation (σ).Ī normal distribution resembles an asymmetric arrangement of most of the values around the mean, such that the curve so formed looks like a bell. This mathematical function has two key parameters:.Here, the mean, median, and mode are equal the mean and standard deviation of the function are 0 and 1, respectively.It follows the empirical rule or the 68-95-99.7 rule.Most values are located near the mean also, only a few appear at the left and right tails. A normal distribution is a statistical phenomenon representing a symmetric bell-shaped curve.
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