Common Probability Distributions

Course Image

This course introduces some of the discrete and continuous probability distributions most commonly used to describe the behavior of random variables.

  • Discrete and continuous random variables
  • Probability distribution function and cumulative distribution function
  • Discrete uniform and binomial distribution functions
  • Using binomial trees to describe stock price movement
  • Tracking error
  • Continuous uniform distribution
  • Normal distribution
  • Univariate and multi-variate distributions
  • Standard normal distribution
  • Short-fall risk and safety-first ratio
  • Normal vs. lognormal distribution
  • Discrete and continuously compounded rates of return
  • Monte Carlo simulation and historical simulation

Course Resources

Study Notes for Common Probability Distributions
Saylient AI Logo

Take the Next Step in Your Data Career

Join our membership for lifetime unlimited access to all our data analytics and data science learning content and resources.