Histogram
A chart that splits the range of values into equal bins and draws a bar for how many values fall into each, showing the shape of the data: symmetric, skewed or with several humps.
In plain English
The shape matters more than the bars: a long tail to the right means the mean is pulled above the median, two humps usually mean two groups mixed together, and a lone bar far from the rest is worth checking. The picture depends on the bin width, so it's worth trying more than one.
Uncle Gary explains
Twenty pizza deliveries: 13 took 20 to 29 minutes, but one 75-minute delivery in the snow made a long right tail and pulled the mean to 30 while the median stayed at 25.5.
Why it matters for your money
A histogram of daily returns looks like a bell in the middle, but its tails are fatter than a bell curve allows. Big moves are rarer than small ones, not as rare as the bell suggests.
Where we tested it
Related terms
All glossary terms. Educational content, not financial advice.