Normal distributions are used to solve business problems, and are applicable only to interval/ratio data.  What are interval and ratio data called?

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litteacher8 | High School Teacher | (Level 3) Distinguished Educator

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Interval and ratio data are called parametric data.  Parametric data is used with a normal distribution only, because the data can be predicted.  Nonparametric data does not assume a normal distribution.  It can be predicted, but only with histograms and is not as reliable.

Interval data is measured along a scale.  Ratio data is measured as a ratio, or the relationship between two numbers.

There are a few uses of normal distribution in business.  Normal distributions can be used to predict how many products on a line might be defective, or how many employees might get sick, for example.  It is also used in finance.

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