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Statistics for Business

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Discrete and Continuous Probability Distributions

Business Statistics With Canadian Applications Hummelbrunner Rak Gray Third Edition Week6

Pages 261-263 chapter 8 Pages 288-314, 320-325 chapter 9

Arranged by: Neiloufar Aminneia

Probability distribution

A probability distribution is a list of all events of an experiment together with the probability associated with each event in a tabular form. It is used for business and economic problems.
We learned frequency distribution to classify data, relating to actual observations and experiments but probability distribution describes how outcomes are expected to vary. Probability distribution for rolling a true die x P(x) Events Frequencies Probability 1 1 1/6 2 1 1/6 3 1 1/6 4 1 1/6 5 1 1/6 6 1 1/6 Total: 1

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Probability distribution for tossing 3 coins

x P(x) Events(# of Heads) Frequencies Probability 0 1 (TTT)) 1/8 = 0.125 1 3 (HTT)(THT)(TTH) 3/8 = 0.375 2 3 (HHT)(THH)(HTH) 3/8 = 0.375 3 1 (HHH) 1/8 = 0.125 total: 1

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Note: Probability distribution is a list of probabilities of all possible outcomes that could result if the experiment were done, but a relative frequency distribution lists the observed

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