# How normal distribution is different from gamma distribution? In theory and practice?

I'm trying to figure out how the normal distribution is different from the gamma distribution in case of theory and practice. Does any one know? Please help.

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One's quite skewed while the other's symmetrical... – J. M. Jul 25 '11 at 8:11

## 1 Answer

Below is a plot of various gamma distributions. The most important aspect is that it's skewed and asymmetric. The gamma distribution is frequently used to model waiting times, the size of insurance claims, and (strangely enough) errors in Poisson Regression.

And below is a plot of various normal distributions. The great power of the normal distribution is that many things can be transformed into a normal distribution via the Central Limit Theorem. It serves as a great physicial model for many processes.

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If the probability distribution of demand represented in Gamma distribution and i want to calculate for the inventory policy called "EOQ" economic order quantity. Normally EOQ formular is suitable for demand represent in normal distribution. So my qestion is if my damand data is represent in Gamma distribution can i use the same EOQ formular with normal distribution? – Sirikarn Jul 25 '11 at 9:12