Stocks & Commodities V. 25:2 (44-48): Sidebar: Gaussian Distribution by Radha Panini

Stocks & Commodities V. 25:2 (44-48): Sidebar: Gaussian Distribution by Radha Panini
Item# \V25\c02\029SB1.pdf
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Stocks & Commodities V. 25:2 (44-48): Sidebar: Gaussian Distribution by Radha Panini

The Gaussian distribution is a symmetric bell-shaped curve. It is fully described by two parameters, the mean and the variance 2. The mean determines the location of the center of the curve (the point about which it is symmetric) while 2 determines the shape of the curve. A larger value of 2 gives a flatter distribution curve, whereas a smaller value gives a narrower curve.




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