{"appState":{"pageLoadApiCallsStatus":true},"articleState":{"article":{"headers":{"creationTime":"2016-03-26T14:12:20+00:00","modifiedTime":"2016-03-26T14:12:20+00:00","timestamp":"2022-09-14T18:04:03+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Business","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34225"},"slug":"business","categoryId":34225},{"name":"Accounting","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34226"},"slug":"accounting","categoryId":34226},{"name":"Calculation & Analysis","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34229"},"slug":"calculation-analysis","categoryId":34229}],"title":"Random Variables and Probability Distributions in Business Statistics","strippedTitle":"random variables and probability distributions in business statistics","slug":"random-variables-and-probability-distributions-in-business-statistics","canonicalUrl":"","seo":{"metaDescription":"Random variables and probability distributions are two of the most important concepts in statistics. 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Random Variables and Probability Distributions in Business Statistics

By: Alan Anderson and

Updated: 03-26-2016

From The Book: Business Statistics For Dummies

Business Statistics For Dummies

Explore Book Buy On Amazon

Random variables and probability distributions are two of the most important concepts in statistics. A random variable assigns unique numerical values to the outcomes of a random experiment; this is a process that generates uncertain outcomes. A probability distribution assigns probabilities to each possible value of a random variable.

The two basic types of probability distributions are discrete and continuous. A discrete probability distribution can only assume a finite number of different values.

Examples of discrete distributions include:

Binomial
Geometric
Poisson

A continuous probability distribution can assume an infinite number of different values. Examples of continuous distributions include:

Uniform
Normal
Student's t
Chi-square
F

About This Article

This article is from the book:

Business Statistics For Dummies ,

About the book author:

Alan Anderson, PhD is a teacher of finance, economics, statistics, and math at Fordham and Fairfield universities as well as at Manhattanville and Purchase colleges. Outside of the academic environment he has many years of experience working as an economist, risk manager, and fixed income analyst. Alan received his PhD in economics from Fordham University, and an M.S. in financial engineering from Polytechnic University.

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