Statistical Distributions
Random Experiment
Statistical Distributions
Random Experiment Random Variable
Statistical Distributions
14
12
10
8
Frequency
0
75
0
1050
More
150
225
300
375
450
525
600
675
750
825
900
975
CEO Salaries (in thousands)
Statistical Distributions
Random Experiment Random Variable
Statistical Distributions
Random Experiment Random Variable
Multiple
possibilities of
CEO Salary
Statistical Distributions
Random Experiment Random Variable
Multiple
possibilities of the “Salary”
CEO Salary
Statistical Distributions
Random Experiment Random Variable
Multiple
possibilities of the “Salary”
CEO Salary
A Statistical Distribution is a tool to help us ‘characterize’ or
‘model’ the random variable
Statistical Distributions
Beta
Binomial
Gamma
Poisson
Normal
t distribution
…
…
Statistical Distributions
Beta
Binomial
Gamma
Poisson
Normal
t distribution
…
…
Statistical Distributions
Beta
Binomial
Gamma
Poisson
Normal the Bell curve
t distribution
…
…
Statistical Distributions
Discrete distribution
Continuous distribution
Statistical Distributions
Discrete distribution
A statistical distribution used for Discrete data
Continuous distribution
Statistical Distributions
Discrete distribution
A statistical distribution used for Discrete data
Continuous distribution
A statistical distribution used for Continuous data
Discrete versus Continuous data
Discrete versus Continuous data
number of students in class
Discrete versus Continuous data
number of students in class
number of patients admitted to a hospital
Discrete versus Continuous data
number of students in class
number of patients admitted to a hospital
number of companies with revenue > 1 b$
Discrete versus Continuous data
Discrete Data
number of students in class
number of patients admitted to a hospital
number of companies with revenue > 1 b$
Discrete versus Continuous data
Discrete Data
number of students in class
number of patients admitted to a hospital
number of companies with revenue > 1 b$
Test of Discreteness
The data is Discrete if between any two realizations a finite
number of outcomes can occur
Discrete versus Continuous data
Discrete Data
number of students in class
number of patients admitted to a hospital
number of companies with revenue > 1 b$
Test of Discreteness
The data is Discrete if between any two realizations a finite
number of outcomes can occur
The data is Continuous if between any two realizations an
infinite number of outcomes can occur
Discrete versus Continuous data
Test of Discreteness
(number of students in a class)
Discrete versus Continuous data
Test of Discreteness
(number of students in a class)
50 60
Discrete versus Continuous data
Test of Discreteness
(number of students in a class)
50 60
Discrete versus Continuous data
Test of Discreteness
(number of students in a class)
50 60
51 52 53 54 55 56 57 58 59
Discrete versus Continuous data
Test of Discreteness
(number of students in a class)
50 60
51 52 53 54 55 56 57 58 59
(heights of men and women)
Discrete versus Continuous data
Test of Discreteness
(number of students in a class)
50 60
51 52 53 54 55 56 57 58 59
(heights of men and women)
150 160
Discrete versus Continuous data
Test of Discreteness
(number of students in a class)
50 60
51 52 53 54 55 56 57 58 59
(heights of men and women)
150 160
infinite possibilities
Discrete versus Continuous data
It is common in business applications to use a
continuous distribution such as the Normal (the Bell
curve) for discrete data
Discrete versus Continuous data
It is common in business applications to use a
continuous distribution such as the Normal (the Bell
curve) for discrete data
Normal distribution
t - distribution