EC255 Chapter Notes - Chapter 5: Weighted Arithmetic Mean, Collectively Exhaustive Events, Qnx
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Continuous distributions: random variable - variable which contains the outcomes of a chance experiment, discrete random variable - set of all possible values is a finite or a countably infinite number of possible values. Number of new subscribers to a magazine. Number of bad checks received by a restaurant. Number of absent employees on a given day: continuous random variable - takes on values at every point over a given interval. Elapsed time between arrivals of bank customers. Percent of the labor force that is unemployed. Probability distributions: a table, formula, or graph that describes the values that a random variable can take and their respective probability, discrete probability distributions. Key requirements: probabilities are between 0 and 1, inclusively. 0 p(x) 1 for all x: total of all probabilities equals 1. Discrete probability distribution: experiment: toss 2 coins let x= # heads, a list of all possible [xi, p(xi)] pairs. Xi = value of random variable (outcome)
