Probability Distribution Function | Normal LogNormal Proability Distribution

Probability Distribution Function

Normal LogNormal Proability Distribution

A function that describes all the values that a random variable can take and the probability associated with each. Also called a probability function.

Probability distributions can be:

Normal
A probability distribution that one forms a symmetrical bell-shaped curve.

Lognormal
A probability distribution in which the logarithm of the random variable follows a normal pattern. Lognormal distributions are used to describe returns calculated over periods of a year or more.

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