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Unformatted text preview: Again, we start with zero b/c nobody might apply for a visa -- although this is highly unlikely and its f(x) will be zero. But we can't put an upper limit on it b/c we don't know the total number of people who may apply in one year. Please note that although in majority of cases a discrete RV has integer values, but that is not a requirement. See the following example: Discrete, non-integer RV XYZ Bank in Lincoln, NE offers mortgage loans. The interest rates offered by the bank in the month of September are: 6.5%, 7.0%, 8.2%. Let's say 100 people apply for loans in September and you record the data: 30 get the 6.5%, 50 get the 7%, and 20 get the 8.2%. X f(X) 0.065 0.3 0.07 0.5 0.082 0.2 1.0 You can see in this case, the random variable, X, which is interest rates is not integer. But it is countable. Dr. J....
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This note was uploaded on 11/13/2011 for the course MBA 522 taught by Professor Nabavi during the Spring '08 term at Bellevue.
- Spring '08