Clearly, the Normal Distribution is the distribution that we feel offers the most relevance and applicability to the financial markets. We’ve already seen its benefitsin But the truth is, it is not the only distribution that can be used to describe a data set. This was clear when So today we take a crack at better understanding the Poisson Distribution.
With its having the same general shape as a Normal Distribution (i.e. ‘Bell Curve’), why don’t we use the Poisson Distribution more regularly in our analysis?