Understanding normal distribution

Normal distribution is the distribution of data in a pattern such that the values plotted cluster around the middle of the graph and taper off towards the end, forming a nice bell curve at the center.


One of the most common and relateable examples we can use to understand normal distribution is people's height. Sure there are very very short and very very tall people. But in an usual sample set, most people's height will average around the middle.

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Understanding normal distribution helps us better understand our data set such that extremities don't affect the mean. How sharply the bell curve peaks will vary from set to set though. Normal distribution is also known as Gaussian Distribution and often used in stock market analysis and plays a vital role in statistics as well.


We use Z Table to calculate the Z Scores in an normal distribution.