normal distribution- Bhavi Shah

NORMAL DISTRIBUTION

The Normal distribution is one of the basic building blocks of statistics. The Normal distribution is also called the Gaussian distribution. Many measurements and physical phenomena can be approximated with the event distribution. The eventl Distribution has applications in many areas of business. Example, portfolio returns and human performance.

The 68, 95, 99.7 are rules for the Normal distribution states that:

68% of all observations lie within 1 standard deviation of the mean, 
within the range of µ +/- s

95% of all observations lie within 2 standard deviations of the mean, 
within the range of µ +/- 2s

99.7% of all observations lie within 3 standard deviations of the mean, 
within the range of µ +/- 3s

50% of normal distribution lies within 0.6745 standard deviations of the mean.

Normal Distribution Cumulative Distribution Function:

The Cumulative Distribution Function (CDF) of a probability distribution, evaluated at a number, is the probability that random variable will be less than or 0 and 1

 Approximates the Binomial  Distribution  when Binomial Distribution parameter p is not too close to 1 or 0.

Approximates the Poisson Distribution  when Poisson Distribution parameter λ is large.