Question

In: Finance

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.

Solutions

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
Next > < Previous

Related Solutions

What is probability distribution? a. Select 5 probability distributions from discrete and continuous random varibles. Express...
What is probability distribution? a. Select 5 probability distributions from discrete and continuous random varibles. Express the probability function and distribution functions of these distributions. b. Show that the distributions you select fulfill the conditions for the probability functions to be probability functions. c. Find the expected values and variance of these distributions theoretically.
Problem 1: Relations among Useful Discrete Probability Distributions. A Bernoulli experiment consists of only one trial...
Problem 1: Relations among Useful Discrete Probability Distributions. A Bernoulli experiment consists of only one trial with two outcomes (success/failure) with probability of success p. The Bernoulli distribution is P(X=k) = pkq1-k, k= 0,1 The sum of n independent Bernoulli trials forms a binomial experiment with parameters n and p. The binomial probability distribution provides a simple, easy-to-compute approximation with reasonable accuracy to hypergeometric distribution with parameters N , M and n when n/N is less than or equal to...
The probability distribution of a discrete random variable x is shown below. X                         0    &
The probability distribution of a discrete random variable x is shown below. X                         0               1               2               3 P(X)                   0.25        0.40         0.20          0.15 What is the standard deviation of x? a. 0.9875 b. 3.0000 c. 0.5623 d. 0.9937 e. 0.6000 Each of the following are characteristics of the sampling distribution of the mean except: a. The standard deviation of the sampling distribution of the mean is referred to as the standard error. b. If the original population is not normally distributed, the sampling distribution of the mean will also...
The binomial and Poisson distributions are two different discrete probability distributions. Explain the differences between the...
The binomial and Poisson distributions are two different discrete probability distributions. Explain the differences between the distributions and provide an example of how they could be used in your industry or field of study. In replies to peers, discuss additional differences that have not already been identified and provide additional examples of how the distributions can be used.
The binomial and Poisson distributions are two different discrete probability distributions. Explain the differences between the...
The binomial and Poisson distributions are two different discrete probability distributions. Explain the differences between the distributions and provide an example of how they could be used in your industry or field of study.
Provide an example of a probability distribution of discrete random variable, Y, that takes any 4...
Provide an example of a probability distribution of discrete random variable, Y, that takes any 4 different integer values between 1 and 20 inclusive; and present the values of Y and their corresponding (non-zero) probabilities in a probability distribution table. Calculate: a) E(Y) b) E(Y2 ) and c) var(Y). d) Give examples of values of ? and ? , both non-zero, for a binomial random variable X. Use either the binomial probability formula or the binomial probability cumulative distribution tables...
What is a probability distribution for a discrete random variable? What does it look like? What...
What is a probability distribution for a discrete random variable? What does it look like? What is probability sampling? Why are researchers encouraged to use this type of sampling if possible in doing their research?
1. The probability mass function of a discrete random variable X is defined as p(x) =...
1. The probability mass function of a discrete random variable X is defined as p(x) = ax for x = 1, 2, 4, 8 (p(x) =0 for all other values) then the value of a is? 2. Let X be a discrete random variable with Var(X) =6.0 and E(X2) = 17.00. Then: E(X) = ? 3. If X is a binomial random variable with parameters n and p, i.e. X ~ b(x; n, p), then the expected value of X...
Construct the discrete probability distribution for the random variable described. Express the probabilities as simplified fractions....
Construct the discrete probability distribution for the random variable described. Express the probabilities as simplified fractions. The number of heads in 5 tosses of a coin. Please answer in a table to understand better.
Determine whether the value is a discrete random​ variable, continuous random​ variable, or not a random...
Determine whether the value is a discrete random​ variable, continuous random​ variable, or not a random variable. a. The number of bald eagles in a countrynumber of bald eagles in a country b. The number of points scored during a basketball gamenumber of points scored during a basketball game c. The response to the survey question "Did you smoke in the last week question mark "response to the survey question "Did you smoke in the last week?" d. The number...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT