However, there are drawbacks to normal probability and it can be difficult to determine whether or not a sample truly follows a normal distribution.

Discover what a log-normal distribution is, its financial applications, and how to calculate it, including using Excel for practical financial analysis.

Let X 1, ⋯, X n be a random sample from a full-rank multivariate normal distribution N (μ, Σ). The two cases (i) μ unknown and Σ = σ 2 Σ 0, Σ 0 known, and (ii) μ and Σ completely unknown are ...