EC255 Chapter Notes - Chapter 5: Weighted Arithmetic Mean, Random Variable, Probability Distribution
Document Summary
Distinguish between discrete random variables and continuous random variables. Compute mean and variance of a discrete distribution. Random variable: variable which contains the outcome of a chance experiment. Discrete random variable: set of all possible values if 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 labour force that"s unemployed. A table, formula, or graph that describes the values that a random variable can take and their respective probability. Experiment: toss 2 coins let x = # heads. A list of all possible [xi, p(xi)] pairs xi = value of random variable (outcome) 0 <= p(xi) <= 1, for each xi.
