Original Design.' The bell curve that we encountered in Chapter 3 represents the normal distribution, in which 68.2 per cent of outcomes are within one standard deviation {plus or minus} of the mean.
The bell curve illustrated in Chapter 3 signifies the concept of normal distribution, a statistical phenomenon where most values cluster around the mean. In this distribution, approximately 68.2 percent of outcomes fall within one standard deviation of the mean, highlighting how data tends to be distributed symmetrically around the average.
This understanding of distribution is essential in finance and economics, as it provides insights into how and why certain outcomes are more common than others. By grasping these statistical principles, one can better navigate the complexities of financial markets and economic trends.
