Random Variable ounce 2 a
ist.inip If
A variable whose values depend on the safe NOT MATHEMATICAL DEFA
no mane x coin toss results in Heads set If coin toss results in rails set
Copyright By Assignmentchef assignmentchef
Ic Ye Heeds
outcome of the die
Define variable
Suppose MSFT returns for next year will be influenced
by the state of the economy
Depression
MSFIffins x o
on 0.10 0.50 o 20 0.20
Major Boom
Prob X 1 p Prob X o I P
BTC value goes down over Bernoulli random variable
in the next year where BTC goes up Random Variable
i BTC sues up next month prob p otherwise prob i p
of months Binomial
t th 0 otherwise prob i p
up in the 12thmonthprob p otherwise pooh i p
Y X t Xz t Possible values I 1 2
Prob 7 Y o E i
X can take any value between o E I with no
preference
Prob x Prob Of
IUniformRandontrate
PDE probability Density E
For any RV X Prob as X1
Important Noneety A PDFs
a PDF of X orUniform c c er
WEprlo EXE ly
X n Uniform o e
teOFLA0 i l
CDF f X n Nored T
normal UniformG b
Normal fu r
simif anemic puniff a b duniff a b
Phomcosm r dunoome u r
quiff 19 b
y CDF of PMImass
y QUANTILES OF
probability f sarees
DISTRIBUTION
named 0,1 then Pr x so
soil quantilet xe y 0.10
lol quantile
a PDF of a
standard normal stander normal dat
smart moral
for discrete RVs
expectedbluef x
if X n Bernoulli Ya Prix d k Prex 07 42
ThenMxorEfx 1It0I I
If X n ther
Normal ON X O.jo o05
Efx ax ax FF
then Efx 0 STANDARD DEVIATION
Bernoulli p Prix 1 P Prix o I
EA My 1PtoCip p
MI.ge 1x M III o.o.s o x on
Mild Bon Major Boom
o 20 X 0.20
x text do X N Uniform o i
Uniform a Hormel o
X N Bernoulli
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