Simulation creating a bell-shaped curve

Another simulation of a bell-shaped distribution generated with the sum of eight uniform(0, 1) random variables.

The experiment of balls falling though a mesh of nails, viewed turned 90° counter clockwise, is nothing more than a very simple additive random walk. Here is another random walk of the geometric type more usual in finance. Random walks are studied in classical mathematical finance to evalutate among other things the proper price of options. We shall study them in lesson 9, where we shall meet the basic Black & Scholes formula, and study simulations to explain it.