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14. Statistical Techniques in Business & Economics (6)

6 ­ 1. Discrete Probability Distributions.Copyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 6 ­ 2 When you have completed this chapter, you will be able to:. 1. Define the terms probability distribution and . random variable. . 2. Distinguish between discrete and . continuous random variables 3. Calculate the mean, variance, and standard deviation of . a discrete probability distribution. 4. Describe the characteristics and compute probabilities . using the Poisson probability distribution.Copyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Terminology. 6 ­ 3. Random Variable. is a numerical value determined by . is a numerical value determined by . the outcome of an experiment the outcome of an experiment. Probability Distribution. is the listing of all possible outcomes . is the listing of all possible outcomes . of an experiment . of an experiment . and the corresponding probability and the corresponding probabilityCopyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Types of Probability Distributions 6 ­ 4. Discrete. Discrete Continuous. C ontinuous Under this distribution . Under this distribution Under this distribution . Under this distribution . the random variable . the random variable random variable . the random variable. the . has a . has a has an . has an .countable number .countable number infinite number . infinite number . of possible outcomes. of possible outcomes of possible outcomes. of possible outcomes Examples. Examples.Copyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Types of Probability Distributions 6