However, there are drawbacks to normal probability and it can be difficult to determine whether or not a sample truly follows a normal distribution.

We study the asymptotic covariance function of the sample mean and quantile, and derive a new and surprising characterization of the normal distribution: the asymptotic covariance between the sample ...

Normal probability distribution is assumed in financial models; however, the returns of many securities tend to demonstrate a non-normal distribution.

where and represent the normal probability density and cumulative distribution functions. The following table shows a subset of the Mroz (1987) data set. In this data, Hours is the number of hours the ...

The multinomial distribution is a type of probability distribution used in finance to determine the likelihood of a certain set of outcomes.

For more information about the SPEC statement, see . The agreement between the empirical and the normal distribution functions in Output 2.1.1 is evidence that the normal distribution is an ...

Sample mean. Sampling from the Normal distribution. Order statistics. Sample statistics. Sampling distributions. Parameter estimation. Interval estimation. Hypothesis testing. Maximum-likelihood ...