# 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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### 1 Answer

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.