Probability distributions, Mathematics

Assignment Help:

 

Probability Distributions

Since the value of a random variable cannot be predicted accurately, by convention, probabilities are assigned to all the likely values that the variable may take. For example, if the price of a share of Dowell Limited could have possible values of Rs.15, Rs.20, Rs.23, Rs.25 and Rs.30, the chances of the actual price taking on any of these values may be described by attaching probabilities of 0.12, 0.20, 0.08, 0.10 and 0.50 respectively to the prices. By enumerating the possible values and assigning probabilities specifically to each of these values, we are in fact, describing a probability distribution of share prices.

X

P(X)

15

20

23

25

30

0.12

0.20

0.08

0.10

0.50

With the help of the above probability distribution, it can be inferred that there is a 50% chance for the price to touch Rs.30 and there is only an 8% chance for the price to assume a value of Rs.23. The probability distribution can give an idea of the likely values of a random variable and the chances of occurrence of the various values.


Related Discussions:- Probability distributions

What is the square root of 36, What is the square root of 36? To search...

What is the square root of 36? To search the square root (√) you ask yourself, "What number multiplied through itself gives me 36?" 6 .6 = 36; thus, 6 is the square root of 36.

First order differential equations, In this section we will consider for so...

In this section we will consider for solving first order differential equations. The most common first order differential equation can be written as: dy/dt = f(y,t) As we wil

Give the introduction to scientific notation, Give the Introduction to Scie...

Give the Introduction to Scientific Notation? In mathematics, it can be very difficult and time-consuming to do calculations involving very large and very small numbers. This i

5th grade, 6 and 3/8 minus 1 and 3/4

6 and 3/8 minus 1 and 3/4

Is this a sample statistic.., jenna asked 100 of her schoolmates if they ha...

jenna asked 100 of her schoolmates if they have had their first kiss and 43 of them said yes

Elps in maths, 25 cookies have to be divided equally among 4 children.hw ca...

25 cookies have to be divided equally among 4 children.hw can we use elps to answer this question?

What is the evaluation of angle, In a periscope, a pair of mirrors is mount...

In a periscope, a pair of mirrors is mounted parallel to each other as given. The path of light becomes a transversal. If ∠2 evaluate 50°, what is the evaluation of ∠3? a. 50°

#titl., class 10 Q.trigonometric formula of 1 term

class 10 Q.trigonometric formula of 1 term

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd