Random Variables flashcards

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What does “Discrete Distributions” mean?Discrete Distributions: A list of numerical outcomes and their probabilities.
What important condition applies to discrete distributions?Discrete Distributions: Both nonnegativity and a total of one are required.
What does “Events for a Random Variable” mean?Discrete Distributions: A set of variable values whose probabilities are added to form an event.
What important condition applies to events for a random variable?Discrete Distributions: Check inclusive versus strict inequalities at event boundaries.
What does “Expected Value” mean?Expected Value: A probability-weighted average of a random variable.
What important condition applies to expected value?Expected Value: The expected value need not occur in any single trial.
What does “Expected Net Gain” mean?Expected Value: An expected return after accounting for the stated cost.
What important condition applies to expected net gain?Expected Value: Include the cost before judging expected gain.
What does “Binomial Settings” mean?Binomial Settings: A count of successes under the binomial trial assumptions.
What important condition applies to binomial settings?Binomial Settings: A fixed trial count, two outcomes, independence, and constant p are required.
What does “Binomial Probabilities” mean?Binomial Settings: The probability of a specified success count in a binomial model.
What important condition applies to binomial probabilities?Binomial Settings: The combinatorial factor is needed except in special endpoint cases.