The probability density function measures continuous variables. Having said that, it's important to note that stock and investment returns are generally not continuous random variables.
A random variable X is a quantity that can take on values randomly according to a probability ( X ? x), where x is a selected value. The probability (X ?x) gives a scalar value on the interval [0,1] ...
As we shall see, knowing the cdf is equivalent to knowing the density or pmf of a random variable. By this we mean that if you know the cdf, then you can find the density or pmf, and if you know the ...
Axiomatic definition of Probability. Bayes' theorem. Repeated trials. Continuous and discrete random variables and their probability distribution and density functions. Functions of random variables ...