bell curve

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or bell-shaped curve (bĕl'shāpt')
n.
The symmetrical curve of a normal distribution. Also called normal curve.


A curve that resembles the axial cross-section of a bell. One example is the graph of the probability density of a normal distribution. It is often assumed that every bell-curve must arise from a normal distribution, but this is not the case. For example, all the t-distributions (including the Cauchy distribution) also give rise to bell-curves. The term can also be used to describe a histogram that approximates a bell-curve.



The most common type of distribution for a variable. The term "bell curve" comes from the fact that the graph used to depict a normal distribution consists of a bell-shaped line.

The bell curve is also known as a normal distribution. The bell curve is less commonly referred to as a Gaussian distribution, after German mathematician and physicist Karl Gauss, who popularized the model in the scientific community by using it to analyze astronomical data.

Investopedia Says:
The highest point in the curve, or the top of the bell, represents the most probable event. All possible occurrences are equally distributed around the most probable event, which creates a downward-sloping line on each side of the peak. 

Related Links:
The bell curve is an excellent way to evaluate stock market risk over the long term. Stock Market Risk: Wagging The Tails
Check out how the assumptions of theoretical risk models compare to actual market performance. The Uses And Limits Of Volatility
Volatility is not the only way to measure risk. Learn about the "new science of risk management". An Introduction To Value at Risk (VAR)
The entire study of statistics originated from Gauss and allowed us to understand markets, prices and probabilities, among other applications. Trading With Gaussian Models Of Statistics


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