Solving Problems w/ Normal Distribution
Normal distribution, also known as the Gaussian distribution, is a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean. In graph form, normal distribution will appear as a bell curve.
A normal distribution is the proper term for a probability bell curve.
In a normal distribution the mean is zero and the standard deviation is 1. It has zero skew and a kurtosis of 3.
Normal distributions are symmetrical, but not all symmetrical distributions are normal.
In reality, most pricing distributions are not perfectly normal.
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