The logarithm function, or the inverse exponent

function is expressed as
Is the same as saying?

log a b=c

ac =b

Multiplying a by itself c times to form b ,

Logarithms basically are concerned with finding the
powers, finding the power of which, if a is raised
to the answer will get us to b
Transformations
A.

Stretching and compressing

y=af ( x )
a>1

Stretch

a<1

Compression

B.

horizontal reflection

y= f ( x )

Reflection over the x axis

C.

vertical reflection

y=f ( x )

Reflection over the y axis

D.

Horizontal motion

y=f ( x c )

shift left

- shift right
E.
Vertical motion
y=f ( x ) d

shift up

- shift down

When I say

interest compounded effectively annually on my principle

interest compounded effectively semi-annually on my principle

interest compounded effectively quarterly on my principle

interest compounded effectively semi-annually on my principle

p(1.05)

When I say

p(1.05) 2

When I say

p(1.05)

1
3

When I say
1

p(1.05) 2

Random variable

Basically Im interested in the outcomes of that particular variable X , these

outcomes are denoted by little x, to differentiate between them and the random variable
itself which is upper X , and since these outcomes might be random, hence the name.
Probability distribution of a random variable X
Basically I want to know how the outcomes i.e. X=x of that random variable differ from
each other, how more often one outcome is from the other.
if I figure the number of all possible outcomes, i.e. all possible x`s, I could calculate the
possibility of each outcome on his own P(X=x).
By putting all the outcomes X=x on the x-axis, and all their probabilities P(X=x) on the
y-axis, we could easily plot how frequent each outcome is.
Example:

X = the number of heads after flipping a fair coin 3 times.

interpretat

X=

All possible

P(X=

ion

outcomes

x)

E(X=x)

0 heads

TTT

0.125

0*0.125+

1 head

HTT

0.375

1*0.375+

2 heads

3 heads

TTH

2*0.375+

THT

3*0.125

HHT

0.375

THH

1.5

HTH

In other words if I flipped a fair coin three

HHH

0.125

times, Im expecting to see 1.5 Heads on

average

From the above example, I want to know the number of heads that show after flipping a
fair coin three times.
We realize that there might be 0 heads, 1 head, 2 heads or 3 heads.
Each outcome from all possible outcomes (the sample space) is assigned to a number
(0, 1, 2 and 3), each number represents a favorable outcome. (0 heads, 1 head, 2 heads
or 3 heads)
To sum it up the whole sample space (all possible outcomes) is broken down into groups
or chunks and each chunk is assigned to a number that represents something
NOTES