However, there are drawbacks to normal probability and it can be difficult to determine whether or not a sample truly follows a normal distribution.

where and represent the normal probability density and cumulative distribution functions. The following table shows a subset of the Mroz (1987) data set. In this data, Hours is the number of hours the ...

Normal probability distribution is assumed in financial models; however, the returns of many securities tend to demonstrate a non-normal distribution.

The multinomial distribution is a type of probability distribution used in finance to determine the likelihood of a certain set of outcomes.

Sample mean. Sampling from the Normal distribution. Order statistics. Sample statistics. Sampling distributions. Parameter estimation. Interval estimation. Hypothesis testing. Maximum-likelihood ...