Random Variable ounce 2 a
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A variable whose values depend on the safe NOT MATHEMATICAL DEFA
no mane x coin toss results in Heads set If coin toss results in rails set
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Ic Ye Heeds
outcome of the die
Define variable
Suppose MSFT returns for next year will be influenced
by the state of the economy
Depression
MSFIffins x o
on 0.10 0.50 o 20 0.20
Major Boom
Prob X 1 p Prob X o I P
BTC value goes down over Bernoulli random variable
in the next year where BTC goes up Random Variable
i BTC sues up next month prob p otherwise prob i p
of months Binomial
t th 0 otherwise prob i p
up in the 12thmonthprob p otherwise pooh i p
Y X t Xz t Possible values I 1 2
Prob 7 Y o E i
X can take any value between o E I with no
preference
Prob x Prob Of
IUniformRandontrate
PDE probability Density E
For any RV X Prob as X1
Important Noneety A PDF’s
a PDF of X orUniform c c er
WEprlo EXE ly
X n Uniform o e
teOFLA0 i l
CDF f X n Nored T
normal UniformG b
Normal fu r
simif anemic puniff a b duniff a b
Phomcosm r dunoome u r
quiff 19 b
y CDF of PMImass
y QUANTILES OF
probability f sarees
DISTRIBUTION
named 0,1 then Pr x so
soil quantile’t xe y 0.10
lol quantile
a PDF of a
standard normal stander normal dat
smart moral
for discrete RVs
expectedbluef x
if X n Bernoulli Ya Prix d k Prex 07 42
ThenMxorEfx 1It0I I
If X n ther
Normal ON X O.jo o05
Efx ax ax FF
then Efx 0 STANDARD DEVIATION
Bernoulli p Prix 1 P Prix o I
EA My 1PtoCip p
MI.ge 1x M III o.o.s o x on
Mild Bon Major Boom
o 20 X 0.20
x text do X N Uniform o i
Uniform a Hormel o
X N Bernoulli
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