Explain Uniform Distribution and provide a simple example.

Expert Solution

Uniform distribution is a type of distribution in which the distribution has a constant probability in some specified interval. It is also known as rectangular distribution. Like all probability distributions for continuous random variables, the area under the graph of a random variable is always equal to 1.

The distribultion is defined by two parameters a and b.

where a is the minimum and b is the maximum.

The probability density function looks like the following:

An example of uniform distribution could be to find the probability that a person gains weight between 10 and 15 pounds given that the average amount of weight gained by a person over the winter months is uniformly distributed from 0 to 30lbs.

Any real life example can be related to uniform distributions as they are relatively simpler than other distributions and then probabilities and expected values or variances can be calculated

orchestra answered 2 years ago

Explain the difference between simple interest and compound interest. Provide an example of each.

•Provide one (1) real-life example or application of a binomial distribution. Explain how the example matches...

•Provide one (1) real-life example or application of a binomial distribution. Explain how the example matches the conditions for the binomial distribution. •Determine the conditions under which you would use a discrete probability distribution rather than a continuous probability distribution. Provide one (1) example to illustrate your reasoning

Provide an example of a simple/basal nervous system and a complex/derived nervous system. Explain how their...

Provide an example of a simple/basal nervous system and a complex/derived nervous system. Explain how their functions differ.

Explain why the velocity distribution over a channel section is not uniform.

Explain SIMPLE INDEXING in Manufacturing of gears with an example

What is a probability distribution? What is a continuous probability distribution? Provide an example from business...

What is a probability distribution? What is a continuous probability distribution? Provide an example from business of the usefulness of a probability distribution and/or a continuous probability.

Q1. Uniform Distribution You believe stock price will follow uniform distribution with mean of 100 and...

Q1. Uniform Distribution You believe stock price will follow uniform distribution with mean of 100 and MAD 20. You are pricing a CALL option with strike at 110. a. what is the mean and range of the distribution? b. what is the probability that the call will be ITM at expiration (ie stock price ends above strike at 110)? c. what is the conditional mean of stock price when CALL is ITM (aka stock price is above strike 110)? d....

Uniform Distribution You believe stock price will follow uniform distribution with mean of 100 and MAD...

Uniform Distribution You believe stock price will follow uniform distribution with mean of 100 and MAD 20. You are pricing a CALL option with strike at 110. a. what is the range of the distribution? b. what is the probability that the call will be ITM at expiration (ie stock price ends above strike at 110)? c. what is the conditional mean of stock price when CALL is ITM (aka stock price is above strike 110)? d. what is the...

Create your own simple Games Fair game. The game must have a non-uniform probability distribution and...

Create your own simple Games Fair game. The game must have a non-uniform probability distribution and 4 or more outcomes. Clearly describe the rules of the game and the points associated with each outcome. Create the points based on an expected value that will allow the game to profit.

Explain valuation of interest rate swaps with a simple example.

Question