Discrete and Continuous Probability Distributions

  • Random variable- a function that assigns a number to each possible outcome in a random experiment
    • Random variables can be classified as either discrete or continuous
    • Discrete random variables- when modeling the behavior of a discrete random variable, we use a discrete probability function that can usually be expressed by a formula or table
    • Probabilities must be between 0 & 1 and must sum up to 1
    • Continuous random variables- when modeling the behavior of a continuous random variable, we use a continuous probability function that takes form of a curve
    • Properties- the entire curve must be above the x-axis and the total area underneath the curve must be 1
    • Finding probabilities- we find the area under the curve between the two endpoints of the interval
  • The binomial distribution is a special named discrete probability distribution that is used when the random variable only has two possible values
    • The outcome of interest is referred to as a success
    • 0 typically represents failure and 1 represents success
    • Conditions of binomial distributions:
    • Fixed number of trials
    • Two possible outcomes (success or failure)
    • The probability of success, p, is the same for each trial
    • Trials are independent (the outcome of one trial does not affect other trials)
    • Parameters- key pieces of identifying information for distributions
    • n=number of trials
    • p=probability of success
    • The shape of the binomial distribution depends on the number of trials (n) and the probability of success (p)
    • E(x)=n*p
  • Normal distribution parameters
    • Mean
    • Standard deviation