Probability & Statistics · Probability
Distributions: Normal, Binomial, Poisson & Fat Tails
The shapes randomness takes: binomial for counts of successes, Poisson for rare events, the normal bell curve and the 68-95-99.7 rule via the central limit theorem, and why fat tails make markets riskier than the bell curve says.
Step 1 of 6 · Overview35 min read ·
Key idea
Prereqs: Random variables & expectation. Next: Statistical inference. Follows Khan Academy, Harvard Stat 110, Nassim Taleb's *The Black Swan* for tails.Next: 1. The workhorses