| Random Variable | A numerical outcome of random behavior (labeled with capital letters like X, Y) |
| Discrete Random Variable | Can only take a countable number of values (with space between values on a number line) |
| Continuous Random Variable | Can take an infinite number of values in an interval (no space between values) |
| Probability Distribution | A table, graph, or function showing all possible values and their probabilities |
| Expected Value (Mean) | The long-run average value of a random variable: μX = Σxi·P(xi) |
| Standard Deviation | Typical deviation from the mean: σX = √[Σ(xi - μX)²·P(xi)] |
| Temp | 78 | 77 | 76 | 75 | 74 | 73 | 72 |
|---|---|---|---|---|---|---|---|
| X | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| P(X) | 0.03 | 0.03 | 0.05 | 0.18 | 0.31 | 0.28 | 0.12 |
| X (pups) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| P(X) | 0.15 | 0.38 | 0.27 | 0.11 | 0.05 | 0.03 | 0.01 |
| Outcome | No Claim | Theft | Fire |
|---|---|---|---|
| X (Profit) | $150 | -$2,850 | -$24,850 |
| P(X) | 0.99 | 0.0097 | 0.0003 |
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