What is a normal distribution?
Simple meaning
A normal distribution is a symmetric bell curve fully described by mean and standard deviation.
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A normal distribution is a symmetric bell curve fully described by mean and standard deviation.
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In a continuous uniform distribution every value in an interval is equally likely.
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Skewness describes asymmetry: right skew has a long high tail, left skew a long low tail.
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A bimodal distribution has two peaks, often because two subgroups are mixed, such as weekday and weekend usage.
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A time series is a sequence of observations ordered in time, such as daily active users or hourly revenue.
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A trend is a long-run increase or decrease in the level of the series.
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Seasonality is a repeating pattern at a fixed period, such as weekly cycles or holiday spikes.
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A KPI is a key performance indicator: a metric the business uses to judge success at a chosen grain and window.
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Conversion rate is conversions divided by eligible opportunities in a period, such as purchases over unique visitors.
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Churn rate is the share of customers who stop using or paying during a period, among those who could have churned.
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The central limit theorem says that the sampling distribution of the mean becomes approximately normal as sample size grows, under mild conditions, even if the raw data are not normal.
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A confidence interval is a range computed from sample data so that, in repeated sampling, a stated fraction of such intervals would cover the true parameter.
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The IQR is the 75th percentile minus the 25th percentile, the spread of the middle half of the data.
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Covariance measures joint variability in original units and can be any real number, so its size is hard to compare across metrics.
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A z-score subtracts the mean and divides by the standard deviation so values are in standard-deviation units.
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Bayes' theorem updates a prior probability of a hypothesis using the likelihood of new evidence, yielding a posterior.
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Conditional probability P(A given B) is the chance of A restricted to the world where B occurred, equal to P(A and B) divided by P(B) when P(B) is positive.
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Expected value is the probability-weighted average of a random payoff.
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The law of large numbers says sample averages converge to the expected value as independent observations accumulate.
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Mutually exclusive events cannot occur together, so their intersection probability is zero.
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