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2 cards from this section. Quick, good the night before a test.
What type of data does the Normal Distribution not apply well to?
Think about distributions that are not symmetrical.
What is one benefit of transforming data?
Consider the shape of the data distribution.
Which of the following is NOT a limitation of the Normal Distribution?
Think about data characteristics that are best represented.
True or False: Heavy tails refer to the tendency of data to behave normally under extreme circumstances.
Consider how extremes are treated in statistical distributions.
You are analyzing a dataset of yearly incomes in a city known for its wealth disparity. Discuss how you would check for normality and detail what transformations could be applied if necessary.
Consider visual and statistical tools for your assessment.
In the stock market, you notice that large price fluctuations occur more frequently than predicted. Suggest a statistical model better suited for this scenario and explain why.
Evaluate models that handle extremes effectively.
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