"This credit-market cycle is nonnormal" and likely to cause months more pain for the broader economy, wrote David Kotok, chairman of the portfolio-management firm Cumberland Advisors, in a note to clients.
"If you're going through all the trouble of developing a prosthetic, what other nonnormal capabilities can be developed?" says Huffman.
Thus, any nonnormal component of this distribution is of less concern than it would be for "template"
As Mr. Markopolos observes: "The quants who create these financial products understand differential equations and nonnormal statistics; they program in languages the SEC doesn't speak; they run statistical packages the SEC doesn't even know exist.
Deviations noted at the right side of these plots are likely to represent both a) true case vs control differences and b) nonnormal differences in the distribution of t values from the bona fide data.