Question

What populations can you think of that would not likely have a normal distribution?

What populations can you think of that would not likely have a normal distribution?

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Answer #1

There are many examples to this. Some of the examples are as followed:

  • The number of accidents per hour happening at a traffic crossing.
  • Waiting time for a customer in a queue. This is expressed as an exponential distribution
  • Complex financial instruments valuation from future cashflows: Here non normal distributions are used as the distribution cannot have negative values ( lower bounded ) and also, the tail values are expected to be more likely (fatter tails ) than in normal distribution.
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