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Lecture Statistical techniques in business and economics (14/e): Chapter 6 - Lind, Marchal, Wathen

Chapter 6 - Discrete probability distributions. In this chapter, the learning objectives are: Define the terms probability distribution and random variable; distinguish between discrete and continuous probability distributions; calculate the mean, variance, and standard deviation of a discrete probability distribution;. | Discrete Probability Distributions Chapter 6 Define the terms probability distribution and random variable. Distinguish between discrete and continuous probability distributions. Calculate the mean, variance, and standard deviation of a discrete probability distribution. Describe the characteristics of and compute probabilities using the binomial probability distribution. Describe the characteristics of and compute probabilities using the hypergeometric probability distribution. Describe the characteristics of and compute probabilities using the Poisson probability distribution. GOALS What is a Probability Distribution? Experiment: Toss a coin three times. Observe the number of heads. The possible results are: Zero heads, One head, Two heads, and Three heads. What is the probability distribution for the number of heads? PROBABILITY DISTRIBUTION A listing of all the outcomes of an experiment and the probability associated with each outcome. CHARACTERISTICS OF A PROBABILITY . | Discrete Probability Distributions Chapter 6 Define the terms probability distribution and random variable. Distinguish between discrete and continuous probability distributions. Calculate the mean, variance, and standard deviation of a discrete probability distribution. Describe the characteristics of and compute probabilities using the binomial probability distribution. Describe the characteristics of and compute probabilities using the hypergeometric probability distribution. Describe the characteristics of and compute probabilities using the Poisson probability distribution. GOALS What is a Probability Distribution? Experiment: Toss a coin three times. Observe the number of heads. The possible results are: Zero heads, One head, Two heads, and Three heads. What is the probability distribution for the number of heads? PROBABILITY DISTRIBUTION A listing of all the outcomes of an experiment and the probability associated with each outcome. CHARACTERISTICS OF A PROBABILITY DISTRIBUTION The probability of a particular outcome is between 0 and 1 inclusive. The outcomes are mutually exclusive events. The list is exhaustive. So the sum of the probabilities of the various events is equal to 1. Random Variables RANDOM VARIABLE A quantity resulting from an experiment that, by chance, can assume different values. EXAMPLES The number of students in a class. The number of children in a family. The number of cars entering a carwash in a hour. Number of home mortgages approved by Coastal Federal Bank last week. DISCRETE RANDOM VARIABLE A random variable that can assume only certain clearly separated values. It is usually the result of counting something. EXAMPLES The length of each song on the latest Tim McGraw album. The weight of each student in this class. The temperature outside as you are reading this book. The amount of money earned by each of the more than 750 players currently on Major League Baseball team rosters. CONTINUOUS RANDOM VARIABLE can assume an .