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QAT1 - Ch 3.2

Quantitative Analysis - Ch 3.2

Probability function A function, denoted ƒ(x), that provides the probability that a discrete random variable x takes on some specific value.
Discrete probability distribution A table, graph, or equation describing the values of the random variable and the associated probabilities.
Expected value A weighted average of the values of the random variable, for which the probability function provides the weights. If an experiment can be repeated a large number of times, the expected value can be interpreted as the “long-run average.”
Variance A measure of the dispersion or variability in the random variable. It is a weighted average of the squared deviations from the mean, m.
Standard deviation The positive square root of the variance.
Created by: kberna1