Dictionary > Finance > C > Cumulative Probability

# Finance Dictionary - C Terms

# Cumulative Probability

The probability that a drawing from the standardized normal distribution will be below a particular value. For example, the probability for a standardized normal distribution that a drawing will be below 0 is clearly 50 percent because the normal distribution is symmetric. Using statistical terminology, we say that the cumulative probability of 0 is 50 percent. Statisticians also say that N(0) ¼ 50 percent.