Topic 1: Review of Probability

Topics Reviewed:
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Random variables
a. Probability density function (PDF)
b. Cumulative Distribution Function (CDF)
c. Mean, variance, Standard Deviation, Random Variables
d. Discrete vs. Continuous random variables
e. Review of some prominent random variables

The notion of random variables:

Define: A random variable is a numerical outcome of a random experiment.
Discrete Random Variable: Ex. X = # dots that turned up on a die toss.
Continuous Random Variable: Ex. Y = Tomorrows high temperature in New Brunswick (can attain a
range of values)
Ex. Z = Income of a randomly selected NJ household is technically a discrete random variable, since
theres a lot of, but finite # of households in NJ. BUT, in this case, its more practical to treat this RV as
continuous, that is pretend theres an infinite # of NJ households that can attain a range of values.
*Key: While a parameter is a RV, its behavior is NOT arbitrary.