Standard Deviation Equation Normal Distribution. The empirical rule or the 68 95 99 7 rule tells you where most of the values lie in a normal distribution. Around 99 7 of values are within 6 standard deviations of the mean.
A normal distribution is a very important statistical data distribution pattern occurring in many natural phenomena. The standard normal distribution follows the 68 95 99 70 rule which is also called as the empirical rule and as per that sixty eight percent of the given data or the values shall fall within 1 standard deviation of the average or the mean while ninety five percent shall fall within 2 standard deviations and finally the ninety nine decimal seven percent of the value or the data shall fall within 3 standard deviations of the average or of the mean. The normal distribution is an essential statistical concept as most of the random variables in finance follow such a curve.
Around 68 of values are within 2 standard deviations of the mean.
S d x 1 x m 2 x 2 x m 2. Every normal distribution is a version of the standard normal distribution whose domain has been stretched by a factor the standard deviation and then translated by the mean value. But i m not sure how to apply this as there doesn t seem to be any concrete percent rule that the 0 7615 applies to. Around 95 of values are within 4 standard deviations of the mean.
