6. Discrete Random Variables

  1. Paolo Brandimarte

Published Online: 24 MAY 2011

DOI: 10.1002/9781118023525.ch6

Quantitative Methods: An Introduction for Business Management

Quantitative Methods: An Introduction for Business Management

How to Cite

Brandimarte, P. (2011) Discrete Random Variables, in Quantitative Methods: An Introduction for Business Management, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118023525.ch6

Publication History

  1. Published Online: 24 MAY 2011
  2. Published Print: 4 APR 2011

ISBN Information

Print ISBN: 9780470496343

Online ISBN: 9781118023525

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Keywords:

  • business management;
  • cumulative distribution function;
  • descriptive statistics;
  • discrete distributions;
  • discrete random variable;
  • probability mass function;
  • standard deviation;
  • variance

Summary

Descriptive statistics deals with variables that can take values within a discrete or a continuous set. This chapter introduces random variables formally, as associations of random events with numerical values. Then, it shows how the distribution of a discrete random variable can be characterized by a probability mass function or a cumulative distribution function, which are related to concepts from descriptive statistics, i.e., histograms of relative frequencies and cumulative relative frequencies. The chapter proceeds along the same conceptual path, introducing expected values of discrete random variables first, and then variance and standard deviations. Finally, the chapter describes the main discrete probability distributions that are common in applications, along with some motivating examples relevant to business management.

Controlled Vocabulary Terms

cumulative distribution function; descriptive statistics; discrete distributions; discrete random variable; probability mass function; standard deviation; variance