They got the maths all wrong...

[earth_imperator]

The usual ET "idiot experts" are here again to spam the thread with their usual stupid off-topic postings...

 

[earth_imperator]

Check y, not 0.4 anymore It's about 0.4 only for the "standard normal distribution (μ=0, σ=1)"
https://en.wikipedia.org/wiki/Normal_distribution#/media/File:Normal_Distribution_PDF.svg

And here I found some real answers to this topic:
https://stats.stackexchange.com/questions/143631/height-of-a-normal-distribution-curve
One of the answers there says that "the height of the mode in a normal density is 1 / (sqrt(2 * π) * σ), approximately 0.3989 / σ".

 

[Overnight]

Check y, not 0.4 anymore It's about 0.4 only for the "standard normal distribution (u=0, s=1)"
https://en.wikipedia.org/wiki/Normal_distribution#/media/File:Normal_Distribution_PDF.svg

View attachment 318390

And here I found some real answers to this topic:
https://stats.stackexchange.com/questions/143631/height-of-a-normal-distribution-curve

Do any of those distribution graphs help you with your risk management?

 

[earth_imperator]

Do any of those distribution graphs help you with your risk management?

Sure! Of course only the "standard normal distribution" is the one I (and mostly anyone) needs
Used in such important risk/reward/pWin calculations like this and this.
Man, I think I just found the HolyGrail™ , so this discussion was very fruitful for me

 

[cruisecontrol]

Check y, not 0.4 anymore It's about 0.4 only for the "standard normal distribution (μ=0, σ=1)"
https://en.wikipedia.org/wiki/Normal_distribution#/media/File:Normal_Distribution_PDF.svg

View attachment 318390

And here I found some real answers to this topic:
https://stats.stackexchange.com/questions/143631/height-of-a-normal-distribution-curve
One of the answers there says that "the height of the mode in a normal density is 1 / (sqrt(2 * π) * σ), approximately 0.3989 / σ".

bruh that is literally what the first reply to this thread said, go back and look.

 

[earth_imperator]

bruh that is literally what the first reply to this thread said, go back and look.

My objection was/is why they (in the standard case) don't simply peak at 0.5 as it's intuitive to grasp the stuff like p(z=0)=0.5.
I now understand that it might have to do with the integral calculation of the area, but IMO it's irrelevant in this visual case as depicted in the OP.

 

[rb7]

There is no point of wasting our time arguing with this guy.

 

[earth_imperator]

Hey @rb7, you POS, you know very well that you are blocked by me, but you POS can't stay away from my threads...

 

[ph1l]

Can somebody tell why "they" clearly use wrong maths? Take a look at the normal distribution curve:
They label the peak with 0.4 instead of 0.5. Why do all do it so wrong?

The standard normal distribution is a normal distribution with a mean of 0 and a standard deviation of 1. The value of the standard normal distribution at 0 is not equal to 0.5 because the value of the distribution at any point represents the height of the curve at that point, not the probability of observing a value less than or equal to that point. The probability of observing a value less than or equal to zero on the standard normal density curve is 0.5, since exactly half of the area of the density curve lies to the left of zero¹. Is there anything else you would like to know?

Source: Conversation with Bing, 7/6/2023
(1) The Normal Distribution - Yale University. http://www.stat.yale.edu/Courses/1997-98/101/normal.htm.
(2) The Standard Normal Distribution | Calculator, Examples & Uses - Scribbr. https://www.scribbr.com/statistics/standard-normal-distribution/.
(3) Standard Normal Distribution Table - Math is Fun. https://www.mathsisfun.com/data/standard-normal-distribution-table.html.
(4) Normal Distribution - Math is Fun. https://www.mathsisfun.com/data/standard-normal-distribution.html.

 

[mervyn]

Check y, not 0.4 anymore It's about 0.4 only for the "standard normal distribution (μ=0, σ=1)"
https://en.wikipedia.org/wiki/Normal_distribution#/media/File:Normal_Distribution_PDF.svg

View attachment 318390

And here I found some real answers to this topic:
https://stats.stackexchange.com/questions/143631/height-of-a-normal-distribution-curve
One of the answers there says that "the height of the mode in a normal density is 1 / (sqrt(2 * π) * σ), approximately 0.3989 / σ".

you need to standardize it, set standard deviation 1.

in financial sampling, you have to standardize it, skewness, kurtosis, z score, p score, shit load of complications.

there is a standardize function in excel.