A random variable is one whose value is unknown or a function that assigns values to each of an experiment’s outcomes. A random variable can be discrete or continuous.

Key Takeaways Expected value describes the long-term average level of a random variable based on its probability distribution.

A random variable that can take only a certain specified set of individual possible values-for example, the positive integers 1, 2, 3, . . . For example, stock prices are discrete random variables ...

Discrete variable's values are also "disjoint," so we have the gaps in a discrete variable's probability distribution graph. While the formula for the expected value of a discrete variable may seem ...

In a number of situations we are faced with the problem of determining efficient estimates of the mean and variance of a distribution specified by (i) a non-zero probability that the variable assumes ...