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Specialized discrete probability distributions are useful for specific applications. Discuss the concepts of a random variable...

Specialized discrete probability distributions are useful for specific applications. Discuss the concepts of a random variable and a probability distribution. Discuss discrete probability distributions that are often used in business applications. Provide examples.

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Expert Solution

Random variable is a random numerical reflection of the outcome based on statistical event . Its value depends upon the outcome of a random phenomenon.

probability distribution is the distribution of various probabilities that can occur at various events and it provides up with an estimation of occurrence of various probabilities during an experiment. Probability distribution is a statistical function that reflects all possible values and the likelihood of occurrence of an event in a particular series.

A discrete distribution reflects the probability of occurrence of discrete random variable. Discrete random variable is a random variable that has countable value.the most common discrete distribution is binomial model or multinomial model, those have high level of implication in overall investing and business applications.

Discrete probability distributions can be used when there has to be a selection dilemma regarding two processes.this can also be highly applicable while capital budgeting decisions regarding selection of mutually exclusive projects or independent projects along with mutually inclusive projects. It cover wide gambit of overall business as it is applicable to field of decision making as well as field of various business processes.

so these probability distributions are highly inherent in our business process and they are used frequently in order to decide multiple business decisions.

jeff jeffy answered 1 year ago
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