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. Can something as simple as a coin toss be effectively applied to the market?
    Investing Basics

    What Are The Odds Of Scoring A Winning ...

  2. Home & Auto

    Insure Your Future With A Career As ...

  3. The debate between those who believe in an efficient market and those who believe that the markets follow a somewhat cyclical path will likely continue for the foreseeable future.
    Fundamental Analysis

    Financial Markets: Random, Cyclical ...

  4. Investing Basics

    Economic Indicators That Do-It-Yourself ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center