# probability distribution

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## Probability distribution

A function that describes all the values a random variable can take and the probability associated with each. Also called a probability function.

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

## Probability Distribution

All the possible values a random variable can take under a given set of circumstances, as well as the probability that it will take each value. A normal probability is a bell curve.

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

## probability distribution

The distribution of possible outcomes to an event along with the probability of each potential outcome. This statistical tool is used to measure the risk associated with events such as shooting craps, playing cards, or investing in securities.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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