Lecturenotes10_1 - Randomness and Sampling Wednesday October 1st 2008 Some definitions Stochastic means randomness a random variable is value that

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Randomness and Sampling Wednesday October 1 , 2008
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Some definitions Stochastic – means randomness. a random variable is value that varies in some way deterministic is the opposite of random a random value is a “draw” from a random distribution (it is one sample of all the possible values of a random variable)
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Random vs. Deterministic X is deterministic because we know that x = 4. y is random. We know that y = 3, 4, or 5 but it is not always the same. Randomness is not completely random 4 = x 1 4 ± = y
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Random Distributions We often know something about the type of randomness that exists Stock price returns: typically vary based on a lognormal distribution Annual average wind speeds also typically follow a rayleigh distribution time to failure of mechanical parts usually follow an exponential distribution sums of many random variables usually follow a normal distribution
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A Simple Example: X = U[0,1] Y = U[5,15] where U[a,b] means uniform distribution with
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This note was uploaded on 02/25/2009 for the course BEE 1510 taught by Professor Staff during the Fall '05 term at Cornell University (Engineering School).

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Lecturenotes10_1 - Randomness and Sampling Wednesday October 1st 2008 Some definitions Stochastic means randomness a random variable is value that

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