Question
Do you think this is correct? please explain. A Normal distribution is seen throughout society in many different ways, such as in economics, business, and
Do you think this is correct? please explain.
A Normal distribution is seen throughout society in many different ways, such as in economics, business, and healthcare. A real-life example of this is in the world of economics; for an exact example, the normal distribution is used in the stock market to measure movements in price and volume in the market and this is achieved by using a bell curve which is a form of normal distubrtion using the past history of a certain stock to measure its future and its potential risks .The normal distribution uses two aspects using both the meanfor possible returns and standard deviation for possible risk. This also can not predict potential drastic event and is seriously flawed due to the unpredictability of the market. This can prove to be disastourous to portfolios and companies if they solely rely on normal distribution.
Reference:https://www.researchgate.net/publication/226557682_The_Role_of_the_Normal_Distribution_in_Financial_Markets
Reference:https://www.investopedia.com/terms/b/bell-curve.asp
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