Probability Density Function - PDF


Probability Density Function - PDF
A statistical measure that defines a probability distribution for a random variable and is often denoted as f(x). When the PDF function is graphically portrayed, the area under the graph will indicate the interval under which the variable with fall.

The probability density function is often used in the creation of financial and economic modeling for forecasting purposes. More specifically, the PDFs of futures exchange rates and equity prices can be employed in models in order to get a more complete picture regarding future market sentiment.


Investment dictionary. . 2012.

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  • probability density function — tikimybės tankio funkcija statusas T sritis automatika atitikmenys: angl. probability density function vok. Wahrscheinlichkeitsdichtefunktion, f rus. функция плотности вероятности, f pranc. fonction de densité de probabilité, f …   Automatikos terminų žodynas

  • probability density function — Statistics. 1. a function of a continuous variable whose integral over a region gives the probability that a random variable falls within the region. 2. Also called frequency function. a function of a discrete variable whose sum over a discrete… …   Universalium

  • probability density function — noun Date: 1957 1. probability function 2. a function of a continuous random variable whose integral over an interval gives the probability that its value will fall within the interval …   New Collegiate Dictionary

  • probability density function — probabil′ity den sity func tion n. 1) sta a function of a continuous variable whose integral over a region gives the probability that a random variable falls within the region 2) sta a function of a discrete variable whose sum over a discrete set …   From formal English to slang

  • probability density function — noun 1. : probability function 2. : a function of a continuous random variable whose integral over an interval gives the probability that its value will fall within the interval …   Useful english dictionary

  • probability density function — in statistics, a mathematical function that describes the distribution of measurements for a population; a curve that describes a population. Its integral is the cumulative distribution function, so the probability that an individual measurement… …   Medical dictionary

  • probability density function — noun Any function whose integral over a set gives the probability that a random variable has a value in that set …   Wiktionary

  • Probability density function — The probability function for a continuous random variable. The New York Times Financial Glossary …   Financial and business terms

  • probability density function — The function that describes the change of certain realizations for a continuous random variable. Bloomberg Financial Dictionary …   Financial and business terms

  • Joint probability density function — may refer to:* Probability density function * Joint probability distribution …   Wikipedia

  • Probability-generating function — In probability theory, the probability generating function of a discrete random variable is a power series representation (the generating function) of the probability mass function of the random variable. Probability generating functions are… …   Wikipedia


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