BalanceCheat
ENDE

Handbook / Analyze

Normal distribution

Model symmetric uncertainty with an explicit mean and standard deviation.

Methods and settings

Method / inputBehavior
MeanCenter of the unbounded distribution, in the input’s displayed unit.
Standard deviationNonnegative dispersion; zero produces a constant value.

Understand the tails

Normal draws are symmetric around the mean and can extend below zero. Whether a negative value is allowed depends on the source and configured absolute bounds. A standard deviation of 5 EURk is a dispersion parameter, not a promise that every outcome lies within 5 EURk of the mean.

Synthetic configuration

For an eligible amount, Absolute mean 100 EURk and standard deviation 10 EURk describe uncertainty around 100 EURk. For an eligible percentage source, choose Percentage-point deviation: mean 0 pp and standard deviation 2 pp describe additive uncertainty around its current rate. These are different modes, not alternative labels for the same entries.

Inspect retained probability

Absolute bounds condition the normal distribution on the permitted interval. An asymmetric interval shifts the resulting sample mean away from the configured unbounded mean. Review retained mass and resulting statistics. Normal is unavailable for integer inputs; use whole-number Discrete or Empirical outcomes instead.

Open in the financial model ↗

Documents the current implemented behavior. Numerical examples are synthetic, not market assumptions.