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Random variable

Random variable is a rule that assigns a number to each outcome of a random process, making probability analysis tractable. It is uncertain before the outcome occurs.

Also known asRV

ByHoang TruongUpdated

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A side-by-side comparison card contrasts discrete and continuous random variables across three dimensions. The Discrete column shows values that are countable (0, 1, 2, …), illustrated by the number of contracts signed per month, with probability assigned as P(X = x) for each specific value. The Continuous column shows values that can take any figure within a range, illustrated by the daily percentage price change, with probability represented as the area under a density curve. A note at the base clarifies that X is the rule — the mapping itself — and that a single observed figure such as €2,450 recorded today is one realisation of X, not the variable itself.

Where it fits
TopicProbability & DistributionsCoreSubjectData Analysis & StatisticsCore

Check yourself

PracticeCORE

Which of the following is an example of a continuous random variable?

Select an answer to check your understanding.