This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Econ 180. Assignment 4. Continuous Random Variables: Normal Distribution. 1. Def: The continuous probability distribution is the probability distribution of a continuous random variables (X). It can not be presented in tabular form, but it can be presented by a formula. Such a formula would necessarily be a function of the numerical values of the continuous variable X as such could be graphed as a smooth curve . The probability function portrayed by this curve is called probability density function (pdf), a frequency distribution, or a probability distribution. 2. Def: Probability density function (pdf): Let X be a continuous random variable, and x be any lying in the range of values this random variable can take. pdf, f(x) of the random variable is a function with the following properties: (1) The area under its curve and above the x axis is equal to 1, i.e., f(x)dx = 1.. (2) The area under the curve between two ordinates x = a and x = b with a < b gives the probability that...
View
Full
Document
 '10
 Shieh,YeungNan

Click to edit the document details