When is understanding the normal distributionand the factors that affect its shape important in solving businessand marketing-related questions?
The quick short answer is – Normal distributions are random, this means if some data has normal distributions it is only affected by common causes and does not have a special cause effecting it. Having said this, lets look more closely at the question.
The normal distribution is by far the most important continuous probability distribution used in statistics. It derives its importance from the fact that it empirically fits many types of physical phenomena. In addition, as shown by the Central Limit Theorem, it is an appropriate distribution to describe probabilistically the link between sample results and the population from which the sample is drawn.
Know that the Normal distribution is to satisfy seven requirements: the graph should be bell shaped curve, mean, medial and mode equal and located at the center of the distribution, only has one mode, symmetric about mean, continuous, never touches x-axis and area under curve equals one.
Applications in Business:
The normal distribution has applications in many areas of business, …
When is understanding the normal distribution and the factors that affect its shape important in solving business and marketing-related questions?