# Student's t-Distribution

*Math & Statistics — Finicade finance glossary*

The t-distribution is a bell curve with fatter tails than the normal, used when the variance is estimated from a small sample. Its shape depends on the degrees of freedom, converging to the normal as the sample grows. Its fat tails also make it a popular alternative to the normal in risk modelling, where the extra tail weight is not a small-sample correction but a description of how markets actually behave.

**Also known as:** t distribution, Students t

**Related terms:** [t-Test](https://finicade.com/glossary/t-test), [Normal Distribution](https://finicade.com/glossary/normal-distribution), [Degrees of Freedom](https://finicade.com/glossary/degrees-of-freedom), [Fat Tails](https://finicade.com/glossary/fat-tails), [Confidence Interval](https://finicade.com/glossary/confidence-interval)

Source: https://finicade.com/glossary/students-t-distribution