Summary
In this chapter, we covered common probability distributions. We started by introducing discrete probability distributions, including the Bernoulli distribution, the binomial distribution, the Poisson distribution, and the geometric distribution. We followed by covering common continuous probability distributions, including the normal distribution, the exponential distribution, and the uniform distribution. Next, we introduced common sampling distributions and their use in statistical inferences for population statistics. Finally, we covered order statistics and their use in calculating the VaR in the context of daily stock returns.
In the next chapter, we will cover statistical estimation procedures, including point estimation, the central limit theorem, and the confidence interval.
