# Discrete random variable

(redirected from*Discrete probability distribution*)

Also found in: Dictionary, Medical, Encyclopedia, Wikipedia.

Related to Discrete probability distribution: binomial distribution

## Discrete random variable

A random variable that can take only a certain specified set of individual possible values-for example, the positive integers 1, 2, 3, . . . For example, stock prices are discrete random variables, because they can only take on certain values, such as $10.00, $10.01 and $10.02 and not $10.005, since stocks have a minimum tick size of $0.01. By way of contrast, stock returns are continuous not discrete random variables, since a stock's return could be any number.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

## Discrete Random Variable

A variable that can take only one of several definite values. For example, one's FICO score is a discrete random variable because it can only be a positive integer between 300 and 850.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, or visit the webmaster's page for free fun content.

Link to this page: