0 Up votes0 Down votes

11 views11 pagesCONTINUOUS DISTRIBUTION IN STATISTICAL METHODS. WILL HELP YOU UNDERSTAND CONTINUOUS DISTRIBUTIONS.THIS INCLUDES EXPONENTIAL,STANDARD NORMAL ETC.YOU CAN EASILY UNDERSTAND THIS DISTRIBUTIONS.
WE HAVE MEANS AND VARIANCES OF THE DISTRIBUTIONS UNDER STUDY.

Nov 18, 2013

© Attribution Non-Commercial (BY-NC)

PPT, PDF, TXT or read online from Scribd

CONTINUOUS DISTRIBUTION IN STATISTICAL METHODS. WILL HELP YOU UNDERSTAND CONTINUOUS DISTRIBUTIONS.THIS INCLUDES EXPONENTIAL,STANDARD NORMAL ETC.YOU CAN EASILY UNDERSTAND THIS DISTRIBUTIONS.
WE HAVE MEANS AND VARIANCES OF THE DISTRIBUTIONS UNDER STUDY.

Attribution Non-Commercial (BY-NC)

11 views

CONTINUOUS DISTRIBUTION IN STATISTICAL METHODS. WILL HELP YOU UNDERSTAND CONTINUOUS DISTRIBUTIONS.THIS INCLUDES EXPONENTIAL,STANDARD NORMAL ETC.YOU CAN EASILY UNDERSTAND THIS DISTRIBUTIONS.
WE HAVE MEANS AND VARIANCES OF THE DISTRIBUTIONS UNDER STUDY.

Attribution Non-Commercial (BY-NC)

- Hidden Figures: The American Dream and the Untold Story of the Black Women Mathematicians Who Helped Win the Space Race
- Hidden Figures Young Readers' Edition
- The Law of Explosive Growth: Lesson 20 from The 21 Irrefutable Laws of Leadership
- The E-Myth Revisited: Why Most Small Businesses Don't Work and
- The Wright Brothers
- The Power of Discipline: 7 Ways it Can Change Your Life
- The Other Einstein: A Novel
- The Kiss Quotient: A Novel
- State of Fear
- State of Fear
- The 10X Rule: The Only Difference Between Success and Failure
- Being Wrong: Adventures in the Margin of Error
- Algorithms to Live By: The Computer Science of Human Decisions
- The Black Swan
- Prince Caspian
- The Art of Thinking Clearly
- A Mind for Numbers: How to Excel at Math and Science Even If You Flunked Algebra
- The Last Battle
- The 6th Extinction
- HBR's 10 Must Reads on Strategy (including featured article "What Is Strategy?" by Michael E. Porter)

You are on page 1of 11

Distributions

Uniform

The probability of each

X in the interval is

uniform (the same)

Uniform can be discrete (ex: dice only have

integers) or continuous (all values in interval)

f (x) =

1

(b a)

: f or(a < x < b)

F(x) =

0 : x < a

x a

b a

: a s x s b

1: x > b

E[X] =

a + b

2

Var[X] =

(b a)

2

12

Uniform: Discrete vs. Continous

p(x) =

1

N

E[X] =

N +1

2

Var[X] =

N

2

1

12

f (x) =

1

(b a)

: f or(a < x < b)

F(x) =

0 : x < a

x a

b a

: a s x s b

1: x > b

E[X] =

a + b

2

Var[X] =

(b a)

2

12

Discrete Continuous

Normal Distribution

Notation: X ~ N(mean, variance)

Note: the second number is variance not standard

deviation

Ex: Standard Normal, Z ~ N(0, 1)

You will likely not need to know the pdf

You will be given a normal table to find common z

values

One-sided: use the (1 alpha) percentile

Two-sided: use the (1 alpha/2) percentile

P(r<X<s) = P[(r-)/ < (X-)/ < (s-)/ ]

Be comfortable using the table!!!

Normal Approximation of Other

Distribtutions

Given RV X, mean, and variance of the

distribution (without knowing what the real

distribution is)

Use normal distribution with the same

mean/variance to approximate the true

probability

Integer Correction for Discrete Distributions

P(n<=X<=m) becomes P(n-1/2<=X<=m+1/2)

Explained/justified well in Actex (see p. 200)

Youll likely still be closest to the right answer without

this, but its more accurate this way

When do I divide by sqrt(n)?

Estimating a value (X)

No square root of n

Estimating a mean (X bar) given a

sample size

Involves square root of n

(ex: SOA 123 #81)

Hint: you only use n when given a

sample size, and its used to

decrease the size of the interval b/c

an average is less variable

Note: the sample size does not

affect the mean, only the variance

X ~ N(

X

,o

X

2

)

o

mean

=

o

X

n

X ~ N(

x

,o

mean

2

)

X ~ N(

x

,

o

X

2

n

)

Exponential Distribution

Usage: X is time until

an event occurs

Parameter: Lamba

(mean = 1/Lambda)

Alternative: Use

Theta = 1/Lambda

Theta = Mean

Can rewrite pdf, E[X],

Var[X], etc. using

Theta

f (x) = e

x

f or: x > 0

F(x) =1e

x

f or: x > 0

E[X] =

1

Var[X] =

1

2

Memoryless Property

P[X > x + y | X > x]

=

P[X > x + y X > x]

P[X > x]

=

P[X > x + y]

P[X > x]

=

e

(x+y)

e

x

= e

y

= P[X > y]

Concept: what happened before

doesnt affect whats going to

happen now

Exponential is about time until

an event occurs

Ex: if no insurance claims

have happened in the past

month, the exponential

doesnt think that one is

due now

There is just as much chance

of a claim happening this

week as there was in the

week following the first

claim

Link Between Exponential and Poisson

Distributions

These distributions are connected by the same

parameter: Lambda

X is the time between events (continuous)

time per events

X ~ Exponential, with mean (1/Lambda)

Ex: time between claims

N is the number of events that have occurred

while that time elapsed (discrete)

events per time

N ~ Poisson, with mean Lambda

Ex: number of claims in a period of time

Minimum of Multiple Exponential RVs

Given multiple RVs with exponential distributions and their means

(1/Lambda), find some probability involving the minimum of all of

the RVs (the lowest value of all of the RVs the time at which the

first event occurs)

An RV with a higher mean may still occur before the lower means (due

to randomness)

Trap: do not just add the means of the exponential distributions

Technique

Convert to Poisson distributions, each with mean Lambda

Add the Lambdas

This new Lambda is the parameter for Y = min{Y1, Y2, , Yn}

Y ~ exponential with mean (1/Lambda)

Key Point: dont add the means of the exponentials, convert to

lambdas, add the lambdas, convert back to exponential

This is a harder problem, but VERY COMMONLY TESTED

Gamma Distribution

Actex does not recognize this as an important distribution to know

Uniform, Normal, and Exponential are the MOST important

f(x) =

*x

-1

*e

-x

()

(n) = (n-1)! (if n is a positive integer)

E(X) = /

Var(X) = /

2

- HW1 Stat JeanPaul statisticsUploaded byyohanize
- Probability and Statistics GR11_WorktextUploaded byCristy Balubayan Nazareno
- 15 Days Programme_Part 3Uploaded byHayati Aini Ahmad
- P and S Unit 1Uploaded byMadhav Ch
- Add Maths Paper 1 Solaf 3Uploaded byAlexlohmal
- Probabilty Statistics Formula Review 2Uploaded byalok_singh_51
- Slide Notes 2 UpUploaded byPuvaneswari Paranjodi
- 6.Continuous RV and Prob DistUploaded byRizki Mufidayanti
- Normal DistributionUploaded bymanas773
- Chapter 5E-CRV%20-%20W0.pdfUploaded byaltwirqi
- 3. 2009 Central Limit TheoremUploaded byfabremil7472
- Answer Chapter 4Uploaded byShafiq Zakariah
- acite.pdfUploaded byConstructif La Critique
- Elementary StatisticsUploaded byRipkah Vyanee
- ch04copyUploaded byTrí
- 8864_2017Uploaded bychuasiokleng
- Tutsheet5Uploaded byqwertyslajdhjs
- EE132B-HW1Uploaded byDylan Ler
- Comparison of Three Geostatistical Approaches to Quantify the Impact of DrillUploaded bysandro0112
- bits end sem presentationUploaded byAbhijeet Roy
- Lc07 SL Estimation.ppt_0Uploaded byDeni Chan
- Introduction SPCUploaded bynurul aini
- Lecture 2 2014 Random Errors in Chemical AnalysisUploaded byRobert Edwards
- 1-s2.0-001670619400020B-mainUploaded byLizeth Mayerly Castellanos Arciniegas
- EEE 414 traffic [Compatibility Mode].pdfUploaded byShubham Rao
- 20349949 Construction PlanningUploaded bymarkck12345
- Stat SyllabusUploaded byMadhusudhana Rao
- C5606_Statistik_UNIT4Uploaded byLidiah Imza
- Central Limit TheoremUploaded byRaye Pushpalatha
- ProbabilityUploaded bytrtl_1970

- USA Separation of PowersUploaded byStephen Kingscrown Favour Mathame
- LOI Letter of Intent 2016Uploaded byStephen Kingscrown Favour Mathame
- Business PlanUploaded byStephen Kingscrown Favour Mathame
- Sample Project PlanUploaded bysan1432
- 51.3 Stratified Random SamplingUploaded byStephen Kingscrown Favour Mathame
- new-companies-registration-formsUploaded bypheteesh2
- Paintball Facility Business Plan (3)Uploaded byStephen Kingscrown Favour Mathame
- Zhak_Viktor_Sokolov_Ilya.pdfUploaded byXrystal
- DimensionsUploaded byStephen Kingscrown Favour Mathame
- BPC Loadshedding F-p-Latest 2013Uploaded byStephen Kingscrown Favour Mathame
- SIMULATOR RIGS-PLAYSEAT SENSATIONUploaded byStephen Kingscrown Favour Mathame
- Advertising Agency Agreement Template - PymivfB5V8vinGFhVvPwGB.pdfUploaded byStephen Kingscrown Favour Mathame
- ECON520Spring2012Lecture08IEUploaded byStephen Kingscrown Favour Mathame
- 5-9complexnumbers-100625121412-phpapp01Uploaded byStephen Kingscrown Favour Mathame
- CHAPTER 1 Definition of Basic ConceptsUploaded byStephen Kingscrown Favour Mathame
- max_minUploaded byBhumika Prajapati

- Revision MCII 08-02-2015Uploaded byVanusha Adihetty
- Probability Densities 1Uploaded byArmand Daputra
- AAOC ZC111Uploaded bySatheeskumar
- B.A(Hons) _Business_Economics_Syllabus_Final.pdfUploaded bybnb
- Eikos a Simulation Toolbox for Sensitivity AnalysisUploaded byOnur Deniz Narin
- L3_slidesUploaded bychalla_seshagiri
- Lecturenotes3658 ProbabilityUploaded byNabilah
- t8Uploaded bysitihidayah188277
- 3 DistributionsUploaded byAngga Ade Putra
- Quantization - TextbookUploaded byKarthik Mohan K
- Business Statistic Chap 006Uploaded byThiện Nhân
- Mass Volume CurveUploaded byDeepakGujraniya
- Chapter 4[1]Uploaded byapi-3729261
- Environmetrics IUploaded bydulcechic
- Estimating Plant Population, Dispersion, And AssociationUploaded bytarun99174858
- - Introduction To Computational Finance And Financial EconometricsUploaded byAndrei
- newbold_sbe8_tif_ch05.pdfUploaded byak
- A Guide on Probability DistributionsUploaded bybillpetrrie
- Ch14 Powell and BakerUploaded byrajkzo
- 254362344 Chapter 6 the Normal Distribution Other Continuous DistributionsUploaded byTasya Asdiga
- ass2_solUploaded byAnh Đức Nguyễn
- law of large numbers.pdfUploaded byNamdev
- Measuring and Optimizing Conditional Value at Risk Using Copula SimulationUploaded byKomang Dharmawan
- ResearchPaper.pdfUploaded byPetronilo Jamachit
- Estimation ProblemsUploaded byAnkur Gupta
- CAT-Wk10Uploaded byPetrina Loh
- Allocation of Geometric Tolerances zNew Criterion and MethodologyUploaded byganesh_the_aviator
- filliben1975.pdfUploaded byHishan Crecencio Farfan Bachiloglu
- CAIA Level I Guide to Foundations of the CAIA Curriculum March 2012Uploaded byJim Wolfe
- Mpd-product Design & ManufacturingUploaded bykrpraveenkumar2003

## Much more than documents.

Discover everything Scribd has to offer, including books and audiobooks from major publishers.

Cancel anytime.