Question

Why is normal distribution important?

Answer 1

Normal distribution

• The normal distribution is also termed as a gaussian distribution. It represents the data from the mean position. In the graph form normal distribution appears as a bell curve.
• The normal distribution is widely used in financing industries. To examine the price action of the stocks and to account for the returns in the assent class.
• The normal distribution is symmetric and has a skewness of zero. The skewness measures the symmetry of a distribution with respect to the normal distribution.
• The normal distribution is an important probability distribution in math and statistics because many continuous data in nature and psychology display this bell-shaped curve when compiled and graphed.