ECON 2200 Chapter Notes - Chapter 5: Standard Deviation, Weighted Arithmetic Mean, Probability Distribution
1 Feb 2017
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Probability distributions shows the possible outcomes of an experiment and the probability of each of these outcomes. Major characteristics: the probability of a particular outcome is between 0 and 1 inclusive, the outcomes are mutually exclusive events, the list is exhaustive. So, the sum of the probability of the various events is equal to 1. In any experiment of chance, the outcomes occur randomly. The outcomes can be qualitative (e. g. soft drink preference) or quantitative (e. g. number of children) in nature. Random variable the numerical value associated with the outcome of an experiment. Examples: the number of dots that appear when you roll a die, the height of a randomly selected student. Discrete random variable a random variable that can assume only certain, clearly separated values. It can, in some cases, assume fractional or decimal values. Continuous random variable can assume an infinite number of values within a give range. Usually the result of some type of physical measurement.
