A stock that has a value of $100 on Januand a value of $100 on Decemhas a 0% (zero) return for the year 2020.A stock that has a value of $100 on Januand a value of $115 on Decemhas a 15% (positive) return for the year 2020.If we assume stock rates of return are normally distributed, they could have positive return, negative return, or zero return in a given year. So, the negative of heights has all negative values. Since all heights are positive, taking the negative will always give us negative values. Since heights are always positive, we know that every data point in this distribution is positive. Let H be a normal distribution of heights. Here are some examples of normal distributions with negative values. Can A Normal Distribution Have Negative Values?Ī normal distribution can have negative values for some or all of its data points. (If the standard deviation were zero, we would have a uniform distribution with constant value, not a normal distribution).
It is also possible for the mean (expected value) of a normal distribution to be negative.
Can A Normal Distribution Be Negative?Ī normal distribution can have negative values for some or all of its data points. We’ll also take a look at some examples to help make things clear. In this article, we’ll talk about normal distributions and when they can be negative. Of course, for a normal distribution to have a negative mean, there would need to be some data points with negative values. However, the standard deviation of a normal distribution is always positive – it is never negative or zero. A normal distribution can also have a negative mean.
So, can a normal distribution be negative? A normal distribution can have negative values for some or all of its data points. We are familiar with distributions with positive values (such as height or weight), but what about negative values? Normal distributions are quite common, and they show up everywhere in statistics and in nature.
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