Please explain the doubt sir

Maths & Stats

What is the difference between probability and Theoretical distribution

Dhakshana Dhakshana

CFA L2

★ 18K+

10-Dec-21 12:59

541

Answers (1)

Probability implies 'likelihood' or 'chance'. When an event is certain to happen then the probability of occurrence of that event is 1 and when it is certain that the event cannot happen then the probability of that event is 0. Hence the value of probability ranges from 0 to 1. When we can allocate probability for different frequency points/ class intervals, out of the total frequency, it is called theoretical distribution.

Sudha Reddy

CA Final

★ 20K+

15-Dec-21 11:13