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

Prove that sec2+cosec2 can never be less than 2, Prove that sec 2 θ+cosec 2...

Prove that sec 2 θ+cosec 2 θ can never be less than 2. Ans:    S.T Sec 2 θ + Cosec 2 θ can never be less than 2. If possible let it be less than 2. 1 + Tan 2 θ + 1 + Cot

Minimax regret method -decision making under uncertainty, MINIMAX regret me...

MINIMAX regret method Minimax method assumes that the decision maker will experience 'regret' after he has made the decision and the events have happened. The decision maker ch

#title LOGIC, HOW MANY ZERO ARE THERE AT THE END OF 200

HOW MANY ZERO ARE THERE AT THE END OF 200

Calculus, need someone to log into my hawkes and complete homework due

need someone to log into my hawkes and complete homework due

Whole numbers, Observe that natural numbers do not have a zero....

Observe that natural numbers do not have a zero. This shortcoming is made good when we consider the set of whole numbers. The set of whole numbe

Binary to decimal, 01010011 01100101 01101101 01110000 01100101 01110010 00...

01010011 01100101 01101101 01110000 01100101 01110010 00100000 01000110 01101001 00100001

Midpoint rule - approximating definite integrals, Midpoint Rule - Approxima...

Midpoint Rule - Approximating Definite Integrals This is the rule which should be somewhat well-known to you. We will divide the interval [a,b] into n subintervals of equal wid

Properties for exponents, The next thing that we must acknowledge is that a...

The next thing that we must acknowledge is that all of the properties for exponents . This includes the more general rational exponent that we haven't looked at yet. Now the pr

G .E matrix, using the g.e matrix, how can you turn an unattractive product...

using the g.e matrix, how can you turn an unattractive product to be attractive

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