ECO220Y1 Chapter Notes - Chapter 9: Random Variable, Bernoulli Trial, Binomial Distribution
27
ECO220Y1 Full Course Notes
Verified Note
27 documents
Document Summary
Discrete random variable: a random variable that can take one of a finite number of distinct outcomes: i. e. either 10, 20, 30, 40, or 50 etc. Continuous random variable: a random variable that can take any numeric value within a range of values. The range may be infinite or bounded at either or both ends: i. e. Probability distribution: a function that associates a probability p with each value of a discrete random variable x, denoted p(x = x), or with any interval values of a continuous random variable: also called a probability model. Expected value (mean): the expected value of a random variable is its theoretical long-run average value, the centre of its model. Denoted or e(x), it"s found (if the random variable is discrete) by summing the products of variable values and probabilities: it isn"t what actually happens to any particular policyholder; it is the average amount. 9. 2 standard deviation and variance of a random variable.
