PPT-Lecture 10 Probability Distributions

John Rundle Econophysics PHYS 255 Probability Distributions Q Why should we care about probability distributions Why not just focus on the data A Outliers We want to know how probable are the outliers of large market moves so we can control our exposure and risk. Fred Davies. ASTR 278. 2/23/12. Contents. Eddington Ratio. What does it mean?. How do we measure it?. Contents. Eddington Ratio. What does it mean?. How do we measure it?. Two regimes of measurement. Objective. : . To solve multistep probability tasks with the concept of geometric distributions. CHS Statistics. A . Geometric probability model. . tells us the probability for a random variable that counts the number of . QSCI 381 – Lecture 12. (Larson and Farber, Sect 4.1). Learning objectives. Become comfortable with variable definitions. Create and use probability distributions. Random Variables-I. A . Continuous distributions. Sample size 24. Guess the mean and standard deviation. Dot plot sample size 49. Draw the population distribution you expect. Sample size 93. Sample size 476. Sample size 948. Stephen Mansour, . PhD. University of Scranton and The Carlisle Group. Dyalog. ’14 . Conference, . Eastbourne. , UK. M. any statistical software packages out there: Minitab, R, Excel, SPSS. Excel has about 87 statistical functions. 6 of them involve the t distribution alone: . A Brief Introduction. Random Variables. Random Variable (RV): A numeric outcome that results from an experiment. For each element of an experiment’s sample space, the random variable can take on exactly one value. Mat 271E. Yard. Doç. Dr. Tarkan Erdik. Probability Distributions. Uniform and Normal Distributions- Week 7. 1. Probability Distributions. 2. It has been observed that . certain functions . F(x). and . Applied Statistics and Probability for Engineers. Sixth Edition. Douglas C. Montgomery George C. . Runger. Chapter 5 Title and Outline. 2. 5. Joint Probability Distributions. 5-1 Two or More Random Variables. How . can it be that mathematics, being after all a product of human thought independent of experience, is so admirably adapted to the objects . of reality. Albert Einstein. Some parts of these slides were prepared based on . Probability Terminology. Classical Interpretation. : Notion of probability based on equal likelihood of individual possibilities (coin toss has 1/2 chance of Heads, card draw has 4/52 chance of an Ace). Origins in games of chance.. 4. Introduction. (slide 1 of 3). A key . aspect of solving real business problems is dealing appropriately with uncertainty.. This involves recognizing explicitly that uncertainty exists and using quantitative methods to model uncertainty.. John Hancock Financial Services. What Is An Actuary?. “Actuaries are highly sought-after professionals who develop and communicate solutions for complex financial issues.”. What Do Actuaries Do?. Copyright © Cengage Learning. All rights reserved. 5 Joint Probability Distributions and Random Samples Copyright © Cengage Learning. All rights reserved. 5.4 The Distribution of the Sample Mean It is also known as the Gaussian distribution and the bell curve. .. The general form of its probability density function is-. Normal Distribution in . Statistics. The normal distribution is the most important probability distribution in statistics because it fits many natural phenomena. .