Discover what a log-normal distribution is, its financial applications, and how to calculate it, including using Excel for ...

Tail risk is portfolio risk that arises when the possibility that an investment will move more than three standard deviations from the mean is greater than what is shown by a normal distribution.

The problem of constructing tolerance limits for a normal universe is considered. The tolerance limits are required to be such that the probability is equal to a preassigned value β that the tolerance ...