Probability distributions, Mathematics

 

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.

Posted Date: 9/15/2012 1:15:59 AM | Location : United States







Related Discussions:- Probability distributions, Assignment Help, Ask Question on Probability distributions, Get Answer, Expert's Help, Probability distributions Discussions

Write discussion on Probability distributions
Your posts are moderated
Related Questions
fgdg ggghfr hhrhfrf hfrrg jhj hjgg dear friend ghr tu vgu jyyiu ui u huik bgyuiiyts husk

can you help me with entrance exam for university ? i really need help so quick


Before we find into finding series solutions to differential equations we require determining when we can get series solutions to differential equations. Therefore, let's start wit

John was doing his homework on vertical addition, and had to compute : 5 3+ 3 4  and 6 8 +45 He did the first one easily, just the way his teacher had taught him. He first ad

How may six digit numbers can be made in which the sum of the digits is even? Ans = 9*10*10*10*10*5

On the Assessment page for the module Moodle site you will find five frequency response functions for the frequency range 20 to 100 Hz in the EXCEL spreadsheet "FRF_Data". These a

What is Negative Exponents explain? Here's a problem which results in a negative exponent: 3 4 /3 7 = 3 (4-7) = 3 -3 A negative exponent means the same thing as making


3 items x, y and z will have 6 different permutations however only one combination. The given formular is generally used to determine the number of combinations in a described situ