Introduction To Normal Distribution
Introduction To Normal Distribution
Distribution
Normal distribution, also known as Gaussian distribution, is a continuous
probability distribution that is symmetric around the mean, showing that data
near the mean are more frequent in occurrence than data far from the mean.
by Dipti Pandey
Characteristics of Normal Distribution
Bell-shaped Curve 68-95-99.7 Rule Real-world Applications
3 Transforming Data
Converting any normal distribution data to standard normal distribution assists in
comparison between different sets of data.
Z-Scores and Probability
2 Finance
Used in financial modeling, risk assessment, and portfolio management.
3 Medical Sciences
It helps in analyzing biological and behavioral phenomena in populations.
Central Limit Theorem
Theorem Statement The sample mean of a sufficiently large
number of independent random variables
approaches a normal distribution.
Research Applications
Widely used in research studies to draw conclusions about populations based on samples.
Hypothesis Testing
Formulate Hypothesis
Establish a null hypothesis (H0) and an alternative hypothesis (H1) for the study.
Conduct Test
Collect & analyze data to determine if there's enough evidence to reject the null
hypothesis.
Draw Conclusion
Based on the statistical evidence, either accept or reject the null hypothesis.