ECO220Y5 Chapter Notes - Chapter 9.1 to 9.3: Random Variable, Standard Deviation, Pythagorean Theorem
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Expe(cid:272)ted value; ra(cid:374)do(cid:373) varia(cid:271)les; dis(cid:272)rete & co(cid:374)ti(cid:374)uous ra(cid:374)do(cid:373) varia(cid:271)les. Probability terms: probability distribution: the collection of all the possible values & their associated probabilities is called the probability distribution for the random variable. It shows how the probability is distributed over all those possible values, showing which values have a higher probability than others: probability model: alternatively, we sometimes use the term probability model to mean the same. Is the difference between these 2 terms is that a probability model is depicted as a formula? thing as probability distribution: example: E(x) denotes the expected value of x. it"s sometimes referred to as ev or (mu). The expected value of a (discrete) random variable is found by multiplying each possible value of the random variable by the probability that it occurs & then summing all those products. (cid:1831)(cid:4666)(cid:1850)(cid:4667)= [ (cid:4666)(cid:1850)=(cid:4667)] Make sure every possible outcome is included in the sum.
