Question

Probability density function produces the likelihood of __________ random variable

Answer 1

Your answer⬇⬇⬇

Probability density function produces the likelihood of Continues random variable.

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Answer 2

Probability density function produces the likelihood of random  discrete variable

Step-by-step explanation:

Probability density function (PDF) is a statistical expression that defines a probability distribution (the likelihood of an outcome) for a discrete random variable (e.g., a stock or ETF) as opposed to a continuous random variable.

1. Probability Density Functions are a statistical measure used to gauge the likely outcome of a discrete value, e.g., the price of a stock or ETF.
2. A discrete variable can be measured exactly, while a continuous variable can have infinite values.
3. PDFs can be used to gauge the potential risk/reward of including a particular security/fund in a portfolio.

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Maximum likelihood function for gamma distribution

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