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By using one of the common stock probability distribution methods of statistical calculations, an investor may determine the ... The binomial distribution below plots a series of 10 ...
However, there are drawbacks to normal probability and it can be difficult to determine whether or not a sample truly follows ...
Probability distributions can also be used to create cumulative distribution functions (CDFs) that add up the probability of occurrences cumulatively. They'll always start at zero and end at 100%.