probabilities density function




Probability density function (PDF). PDFs are used to represent the relative likelihood that a parameter or variable will have a particular value. Where there is discrete set of possible values (e.g. heads or tails), the function represents the probability itself (e.g. 0.5, 0.5). Where the variation in values is continuous, the probability distribution function defines the probability that the value lies between two values, a and b. This is represented by the area under the function. Different distributions are appropriate for different processes and types of variability. (UKCIP, 2003)

Broader terms

economic models