A skewed curve at either end indicates greater or lesser risk/reward. Understanding Probability Density Functions (PDFs) Statistical tools are commonly used by people in the investment world.

The Basic Curve The basic probability curve looks like an anthill. Here, the X axis represents potential outcomes from worst to best, going left to right. The Y axis represents the probability of ...

A bell curve is a symmetric curve centered around the mean, or average, of all the data points being measured. The width of a bell curve is determined by the standard deviation—68% of the data ...

The model shows earthquake probability curves for central Oklahoma increasing to 2015 due to brine injection. After injection is reduced and assumed to end in 2017, brine continues to diffuse in ...

Jonathan Wright, the 2006 paper’s author, is now a professor of economics at Johns Hopkins University. He acknowledges the yield curve can produce false positives — like in 2019, when the ...