Category: Econometrics

Expected Values or Mathematical Expectations

The expected value, or mean, of a random variable is a measure of the central location for the random variable. The formula for the expected value of a discrete random variable X follows. Expected value of a discrete random variable X can be written as i.e., Properties of Mathematical Expectations 1. The expected value of constant …

Probability Definitions

The term probability has been interpreted in terms of four definitions : 1. Classical Definitions : the classical definition states that if an experiment consists of ’S’ outcomes which are mutually exclusive, exhaustive and equally likely and  of them ate the favourable outcomes of an event A then the probability of the event is In other …

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