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Earn +20 ptsQ: What is the shape of normal probability curve?
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Why if a probability distribution curve is bell shaped why is this a normal distribution?
A bell shaped probability distribution curve is NOT necessarily a normal distribution.
Does a probability histogram follow the normal curve?
Not necessarily.
How is probability related to the area under the normal curve?
The Normal curve is a graph of the probability density function of the standard normal distribution and, as is the case with any continuous random variable (RV), the probability that the RV takes a value in a given range is given by the integral of the function between the two limits. In other words, it is the area under the curve between those two values.
Is in the normal distribution the total area beneath the curve represent the probability for all possible outcomes for a given event?
Yes. The total area under any probability distribution curve is always the probability of all possible outcomes - which is 1.
What shape would the probability distribution have for completely uncertain returns?
the variance is infinitely large and in the extreme case the probability distribution curve will simply be a horizontal line
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