EC255 Chapter Notes - Chapter 5: Probability Distribution, Binomial Distribution, Hypergeometric Distribution
Document Summary
Random variable: a variable that contains the outcomes of a chance experiment. An experiment is to measure the arrivals of automobiles at tollbooth during a 30 second period the possible outcomes (0 cars, 1 cars, n cars) are the values of a random variable. Discrete random variable: if the set of all possible values is at most a finite or a countably infinite number of possible values. In most stats situations, discrete random variables produce values that are nonnegative whole numbers. Discrete random variables are usually generated from experiments in which things are. Continuous random variables: take on values at every point over a given interval. Continuous random variables have no gaps or unassumed values. Generated from experiments in which things are measured, not counted. Once continuous data are measured and recorded, they become discrete data b/c the data is rounded to a discrete number in actual practice, all business data are discrete.
