Question

What is a probability distribution? What is a continuous probability distribution? Provide an example from business of the usefulness of a probability distribution and/or a continuous probability.

Answer 1

Probability distribution is a function which describes all the possible values that a random variable can take. It is of two types: discrete probability distribution and continuous probability distribution.

Continuous probability distribution is that probability where the random variable is continuous, i.e, it does not take discrete values.

For example,

Consider a man waiting for his friend at a railway platform can be described as a case of continuous probability distribution as the time path is a continuous variable.

Simillary, tossing a coin can be described as a case of discrete probability distribution.