Question
I need to respond to them by providing additional examples or support for their argument. Your response must be substantive and demonstrate your statistics knowledge.
I need to respond to them by providing additional examples or support for their argument. Your response must be substantive and demonstrate your statistics knowledge.
Q: State an example of a variable that follows a normal distribution.State one way knowing this is useful in your professional or personal life.Briefly elaborate on your example.
A: An example of a variable that follows a normal distribution would be the way industries advertise their stock market returns. Most investments show their expected range of growth with normal distribution but also adds the risk involved as well, which is known as volatility. "It's very common in the investments industry to model the potential range of an investment's future returns with a normal distribution. Any time we can model something with normal distributions, it makes life a lot easier" (Tony Yiu, 2020). This can be very useful in your personal life if you decide to start investing in a particular stock, although since normal distribution is symmetrical if also would not be the best describer of returns as stated by Tony Yiu, 2020. Most industries have stocks that are all over the place depending on how long we go back. For example, the three graphs provided below show how different they can be. The top one is an example of normal distribution in the article I have provided. The second one is a Disney stock going back 5 years. It shows how the stocks went up and down, but are showing that they are making money and raising the prices of their stocks.
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