# Econ 1701 Tuesday November 29th 2019.docx - Econ 1701:...

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Econ 1701: Tuesday, November 29th, 2019Probability distribution for continuous random variables:-If RV is discrete can assign a probability to each value x takes on-Continuous takes on an infinite number of values-i.e. takes on fraction values-All points on continuous line interval-Can't assign a probability to each of infinite values-If take measurements on a continuous random variable will get narrow class bands-More observations → narrower class bands-f(x) = probability density functionProperties of continuous probability density functions-Area under curve adds up to 1-P(a≤x≤b) = area under the curve between a and b-Probability that x = a P(x=a) = 0-P(x≤a) = P(x<a)-P(x≥a) = P(x>a)-Need continuous function f(x) that describes the model-Pick model that best fits the data and allows you to make inferences-Uniform distribution-Random variable is evenly distributed over an interval-Ex. Old faithful geyser-Erupts every 91 minutes-If arrive at random time and wait 20 minutes what is probability will see aneruption-P(a ≤ x ≤ a+20)-Exponential distribution-Use for wait timea or life times-
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