Advertising

Probability distribution

• Also called a probability function, a function that describes all the values that the random variable can take and the probability associated with each.

• A model that relates probabilities to the associated outcomes.

• Is the mechanism which generates occurrences, observations, events, returns, and variability of returns or risk. A famous distribution is the Normal Distribution with its often cited bell-shaped curve. It should be noted that many other distributions have bell-shaped curve appearances but do not necessarily behave in a normal manner. There are several statistical tests to compare and differentiate between seemingly similar curves but significantly different processes. Some probability distributions are: Bernoulli, Beta, Binomial, Cauchy, Chi Square, Exponential, F, Gamma, Geometric, Lognormal, Negative Binomial, Normal, Pascal, Poisson, t and Uniform.

 
 Embedded terms in definition
 Beta
Distributions
Distribution
F
Gamma
Its
Normal distribution
Probability function
Probability
Random variable
Random
Risk
Take
Variable
 
 Related Terms
 

<< Probability density function Probability function >>

Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...

Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity. - George S. Patton

Advertising



Copyright 2009-2019 GVC. All rights reserved.