Chapter 8: Continuous Probability Distributions
8.1 Probability Density Functions
•
Requirements for a Probability Density Function
– the following requirements apply to a probability
density function
f(x)
whose range is
1.
for all
x
between
a
and
b
.
2.
The total area under the curve between
a
and
b
is 1.0.
•
Uniform Distribution
o
The
uniform probability distribution
, also called the
rectangular probability distribution.
o
Uniform probability Density Function
•
Using a Continuous Distribution to Approximate a Discrete Distribution
o
Although some random variables have the properties of a discrete random variable such as money
where there is finiteness (large number but countable, there’s no upper limit) we can still employ a
continuous probability distribution to determine the probability associated with such variables
8.2 Normal Distribution
•
The
normal distribution
is the most important of all probability distributions because of its crucial role in
statistical inference
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 Fall '11
 tanaka
 Economics, Normal Distribution, Probability distribution, Probability theory, probability density function, normal random variable, Discrete Distribution

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