When to Use Normal Versus Lognormal Distribution The preceding example helped us arrive at what really matters to investors: when to use each method. Lognormal is extremely useful when analyzing ...

A normal distribution is a probability distribution of outcomes that are symmetrical or form a bell curve. In a normal distribution, 68% of the results fall within one standard deviation, and 95% ...

One consequence is that the logit-normal, which stretches the right-hand end of the distribution, consistently gives a slightly better fit. 4. The central limit theorem predicts lognormality of ...