E370

2/24/2016
About Continuous
Distributions and The
Uniform Distribution
Week 07 Part 2
 What differences exist between discrete and
continuous random variables?
Continuous random variables:
An RV that can take on any value in an interval

No gaps between values

Because there is an infinite number of X values, we

cannot associate a probability with a single value,
only a range of values.

Continuous vs Discrete RVs

Probability Density Function (pdf)

the technical name of the curve

often represented as f(x) (say f of x)
f(x) 0 for all x (probabilities cant be
negative)
f(x)dx = 1 (probabilities sum to 1)

CONTINUOUS LANGUAGE
 For continuous distributions, P(X=a) = 0.
eg, probability that a person randomly drawn from a
population is exactly 54.23 inches tall is equal to 0.
Onlythe probability that X falls in an interval
can be measured, and is measured as an area
under the curve.
It is possible to evaluate the likelihood that a random
person is between 54 and 55 inches tall.
Thus, P(a < X < b) is identical to P(a < X < b).
If interval limits are included in the interval or not,
the probability stays the same.

Hence, continuous facts

 Some Discrete Variables we treat as
continuous:
Family Income
Corporate Taxes
Sales Revenues
Any monetary figure
dollar amounts are measured to the nearest penny,
but are usually considered continuous.
Why would we treat discrete random variables
as if they are continuous?

Discrete can be continuous?

Characteristics
The simplest continuous distribution
pdf is a horizontal line.

The height of the line is calculated by

where a and b are the endpoints of the interval over
which the variable is defined.
Probabilities are calculated as areas of rectangles.
A two-parameter distribution, X~U(a,b)

The Uniform Distribution

 AtBloomington Valley Nursery daily demand for
hardwood mulch is uniformly distributed from 100
cubic feet to 195 cubic feet during the months of April
and May. The nursery begins each day with 175 cubic
feet of hardwood mulch.

An Example
f(x)=(1/(195-100))=0.010526 Supply
Demand

80 90 100 110 120 130 140 150 160 170 180 190 200 210

The Market
f(x)=(1/(195-100))=0.010526 Supply
Demand

80 90 100 110 120 130 140 150 160 170 180 190 200 210
How likely is it that any given day they will be
unable to completely meet demand?
The area from (175 to 195) * 0.010526 =20*0.010526
=0.211
How likely is it that demand will be 140 cubic
feet at most?

Whatis Bloomington Valley Nurserys expected
demand for hardwood mulch?
147.5 ft3
By how many ft3 will the demand vary on
average?
.
27.42 ft3
How likely is it that a days demand will be within 1
standard deviation of the mean?
=2*f(x)=2*27.42*(0.010526) = 0.577

Uniform Expected Values