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Distribution and Loss Functions: Alex Robinson
Distribution and Loss Functions: Alex Robinson
Distribution and Loss Functions: Alex Robinson
Alex Robinson
March 9, 2018
Probability Distributions
10
X
E(max(X − 7, 0)) = pi (max(i − 7, 0))
i=1
10
X
= pi (i − 7)
i=7
= p7 (7 − 7) + p8 (8 − 7)
+ p9 (9 − 7) + p10 (10 − 7)
= 1(0.1) + 2(0.05) + 3(0.15)
= 0.65
Continuous Distributions