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

Play and learn maths, PLAY AND LEARN :  Children can learn many basic math...

PLAY AND LEARN :  Children can learn many basic mathematical concepts through games. They enjoy Mathematical concepts can be playing within familiar contexts. Their games also gen

Case study, considring the concept of product life cycle,where would you pu...

considring the concept of product life cycle,where would you put viedo games in thier life cycle?

Which of the subsequent numbers will yield a number larger, Which of the su...

Which of the subsequent numbers will yield a number larger than 23.4 while it is multiplied by 23.4? When multiplying through a number less than 1, you get a product in which i

Example of graphing equations, Example of Graphing Equations: Example...

Example of Graphing Equations: Example: By using the above figure, find out the distance traveled if the average speed is 20 mph and the time traveled is 40 minutes. T

Prove that three times the sum of the squares, Prove that three times the s...

Prove that three times the sum of the squares of the sides of a triangle is equal to four times the sum of the squares of the medians of the triangle. Ans:    To prove 3(AB 2

Computerised payroll package, How to calculate costs if you have a computer...

How to calculate costs if you have a computerised payroll package for your large business?

Absolute mean deviation-measures of central tendency, Illustration 1 I...

Illustration 1 In a described exam the scores for 10 students were given as: Student Mark (x) |x-x¯| A 60

Laplace transforms, As we saw in the previous section computing Laplace tra...

As we saw in the previous section computing Laplace transforms directly can be quite complex. Generally we just utilize a table of transforms when actually calculating Laplace tran

Standard trig equation, "Standard" trig equation: Now we need to move into...

"Standard" trig equation: Now we need to move into a distinct type of trig equation. All of the trig equations solved to this point were, in some way, more or less the "standard"

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