Probability Distributions for Business statistics

Question 1

Uniform Distribution

Answer 1

a statistical distribution in which every possible outcome has an equal chance or likelihood of occurring

Question 2

Types of uniform distribution

Answer 2

Discrete

continous

Question 3

discrete

Answer 3

meaning the outcomes are distinct and finite

Question 4

Continuous distributions

Answer 4

can take any value (infinitely many) within a range

Question 5

random variable

Answer 5

a variable that describes all of the possible outcomes of a random process.
a discrete or continuous variable that describes all of the possible outcomes.

Question 6

Type of random variables

Answer 6

discrete and continous

Question 7

Discrete random variables

Answer 7

Involve processes in which the total number of possible outcomes is countable

Question 8

continuous random variables

Answer 8

involve processes in which the total number of possible outcomes is not countable

Question 9

probability density function

Answer 9

a continuous probability distribution function

a continuous graph showing the distribution of the function.

Question 10

expected value

Answer 10

can be thought of as the outcome that we should expect on average, is computed using the following formula for discrete probability distributions

Question 11

summation

Answer 11

for discrete random variables

Question 12

Integration

Answer 12

for continuous random variable

Question 13

Expected Value

Answer 13

sum of (x times p(x))

Question 14

binomial experiment

Answer 14

an experiment that contains a fixed number of trials that results in only one of two outcomes: success or failure. When analyzing the data of binomial experiments, you will use three variables: x, n, and P.

Question 15

binomial random variable

Answer 15

the number of successes in a binomial experiment.

Question 16

expected value

Answer 16

the number of successful outcomes expected in an experiment

Question 17

standard deviation

Answer 17

the degree in which the variables are different from the mean

Question 18

standard deviation formula for binomial random variables

Answer 18

the sqrt(n * P * ( 1 - P ))

Question 19

Poisson distributions

Answer 19

used to calculate the probability of an event occurring over a certain interval of time, area, volume, or distance.
used for rates, and depends only on the average value.
used to analyze probability when rates are involved, using only the average rate in the computation

Question 20

What does the X represent in the Poisson formula

Answer 20

x represents the number of successful events

Question 21

Each successful event in a Poisson distribution

Answer 21

each successful event must be independent

Question 22

probability distributions

Answer 22

analyze risk and uncertainty

Question 23

binomial distribution

Answer 23

useful when each unique trial has the same probability of success.
based on two possible results
need to know how many events we’re measuring and what the probability of individual success or failure is

Question 24

Hypergeometric distributions

Answer 24

used when samples are not replaced in the measured population