The Student’s T-distribution looks much like a normal distribution but generally has fatter tails. Fatter tails allow for a higher dispersion of variables, as there is more uncertainty.
The Student’s T distribution was one of the biggest breakthroughs in statistics, as it enabled inference through small samples with an unknown population variance. This setting can be applied to most of the statistical problems we face today.
Other related topics you might be interested to explore are Normal distribution and Confidence intervals.
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Student’s T-distribution is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum.
