BUAD 310g Chapter Notes - Chapter 7: Discrete Uniform Distribution, Random Variable, Normal Distribution

• School: USC
• Department: Business Administration
• Course: BUAD 310g
• Professor: Mukherjee Gourab

Document Summary

Probability distribution is either probability density function (pdf) or cumulative distribution function (cdf) Pdf is equation that shows height of curve at each possible value of x. Cdf is cumulative area to the left of a given value of x. *the pdf reveals the shape of the distribution. The entire area under any pdf must be 1. Integral sign replaces summation sign for continuous random variables (discrete random variables included summation sign) Uniform continuous distribution- simplest model one can imagine. Continuous uniform distribution is similar to the discrete uniform distribution if the x-values cover a wide range. Used when you have no reason to imagine that any x-values are more likely than others. Defined by two parameters: mean and standard deviation. Important as a sampling distribution for estimation and hypothesis testing. When the range is large, we often treat a discrete random variable as continuous.