Lecture Chapter 5:

 Section 5.6
 Random Variable: an outcome of experimentation (your data)
 Can be discrete or continuous
 Discrete Random Variable: finite, no fractions whatsoever
 Example: number of children per household, number of speeding tickets
per person
 Can assign a probability
 Continuous: fractional
 Example: time from work to school, mile time (time, height, weight,
distance)
 Cannot assign a probability to a continuous variable
 In 361B we look at continuous variables
 ***REMEMBER you cannot do a specific probability for a number
 CANNOT do this P (x = 90) in continuous
 Probability distribution (Probability Density Function): This is graphical
representation of data
 Can be normal, bimodal, ect.
 We must relate our data to a known type of distribution so we can understand the
behavior of the data
 Example: Students
First Test Scores:

90 89 90 90 60 71 75 80 92 75
 If we are trying to find the probability that P(x>=90) 3/10
 We can categorize on excel with a histogram
 Once you create the histogram, we can find the PDF and we see it
 Continuous Probability Distributions: (from the text)
 1. Uniform (simulation)
 2. Normal (forecasting, Inuty)
 3. Exponential (waiting line models)

 Uniform:


This is equal across the board - uniform!

It is unlikely this happens, it will be a straight, horizontal line

Not responsible for functional format

f(x) = 1 / (b-a) a< x < b

Understand that there are limits in the uniform

HOMEWORK PROBLEM: asks for mean value of x
 Mean E(x) = a + b / 2
 Variance (x) = (b - a)^2 / 12
 Normal:
  Mean and standard deviation
 Higher the standard deviation, the higher the spread and the spread is wider
 Will be tested on the exam that the lower standard deviation is better because it is
less volatile
 Exponential:
 Airlines use this method

 P(x) = 1/ u ^ e^-x/u
 U = mean
 Lambda = 1 / u
 P (x < 3) = expon.dist(3, ⅕, true)