Discrete Distribution

AAA

DEFINITION of 'Discrete Distribution'

The statistical or probabilistic properties of observable (either finite or countably infinite) pre-defined values. Unlike a continuous distribution, which has an infinite number of outcomes, a discrete distribution is characterized by a limited number of possible observations. Discrete distribution is frequently used in statistical modeling and computer programming.

Also known as a "discrete probability distribution".

INVESTOPEDIA EXPLAINS 'Discrete Distribution'

Examples of discrete probability distributions include binomial distribution (with a finite set of values) and Poisson distribution (with an countably infinite set of values). The concept of probability distrubtions and the random variables they describe are the underpinnnings of probability theory and statistical analysis.

RELATED TERMS
  1. Random Variable

    A variable whose value is unknown or a function that assigns ...
  2. Poisson Distribution

    A statistical distribution showing the frequency probability ...
  3. Quantitative Analysis

    A business or financial analysis technique that seeks to understand ...
  4. Statistics

    A type of mathematical analysis involving the use of quantified ...
  5. Scenario Analysis

    The process of estimating the expected value of a portfolio after ...
  6. Stochastic Modeling

    A method of financial modeling in which one or more variables ...
Related Articles
  1. What Are The Odds Of Scoring A Winning ...
    Investing Basics

    What Are The Odds Of Scoring A Winning ...

  2. Insure Your Future With A Career As ...
    Home & Auto

    Insure Your Future With A Career As ...

  3. Financial Markets: Random, Cyclical ...
    Fundamental Analysis

    Financial Markets: Random, Cyclical ...

  4. Economic Indicators That Do-It-Yourself ...
    Investing Basics

    Economic Indicators That Do-It-Yourself ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center