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