BUSS1020 Lecture Notes - Lecture 5: London Academy Of Music And Dramatic Art, Standard Deviation, Dependent And Independent Variables
5 Jun 2018
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Some properties of a probability distribution
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To compute the expected value and variance of a discrete probability distribution
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To compute probabilities from binomial, hypergeometric, and Poisson distributions
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How to use the discrete distributions to help solve some business problems
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LO:
A random variable (rv) represents possible outcomes from an uncertain event.
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Numerical rvs can be discrete or continuous
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Number of new subscribers to a magazine
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Number of bad cheques received by a restaurant
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Number of absent employees on a given day
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Prices and price changes.
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Discrete Random Variable — the set of all possible outcomes is a finite, or “countably infinite”, number of
values
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Temperature
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Elapsed time between arrivals of bank customers
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Percent of the labour force that is unemployed
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Financial returns
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Continuous Random Variable —takes on values at every point over a given interval
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Random Variables:
Can only assume a countable number of values
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Let X be the number of times 4 occurs
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(then X could be 0, 1, or 2 times)
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Roll a die twice
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Let X be the number of heads, (then X = 0, 1, 2, 3, 4, or 5)
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Toss a coin 5 times.
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Examples:
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Discrete Random Variables:
A probability distribution for a numerical discrete rv is a mutually exclusive and collectively exhaustive list of
the possible outcomes for that variable, and an associated probability of occurrence for each.
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Probability Distribution for Discrete Random Variables
See textbook for examples
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5. Discrete Probability Distribution
Wednesday, 11 April 2018
10:15 AM
Textbooks Page 1
the possible outcomes for that variable, and an associated probability of occurrence for each.
Textbooks Page 2
Discrete Random Variables Expected Value (Measuring Centre)
Textbooks Page 3
Document Summary
To compute the expected value and variance of a discrete probability distribution. To compute probabilities from binomial, hypergeometric, and poisson distributions. How to use the discrete distributions to help solve some business problems. Number of bad cheques received by a restaurant. Number of absent employees on a given day. A random variable (rv) represents possible outcomes from an uncertain event. Discrete random variable the set of all possi(cid:271)le out(cid:272)o(cid:373)es is a fi(cid:374)ite, or (cid:862)(cid:272)ou(cid:374)ta(cid:271)ly i(cid:374)fi(cid:374)ite(cid:863), (cid:374)u(cid:373)(cid:271)er of values. Continuous random variable takes on values at every point over a given interval. Percent of the labour force that is unemployed. Can only assume a countable number of values. Let x be the number of times 4 occurs (then x could be 0, 1, or 2 times) Let x be the number of heads, (then x = 0, 1, 2, 3, 4, or 5)
