probability distribution

probability distribution definition - business

probability distribution

The distribution of possible outcomes to an event, along with the probability of each potential outcome. This statistical tool is used to measure the risk associated with events such as shooting craps, playing cards, or investing in securities.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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