Probability-Probability-Distributions

This Jupyter notebook explores various concepts and applications of probability and probability distributions. It includes a range of functions and examples to demonstrate different aspects of probability theory in finance, as well as visualizations of different probability distributions.

Table of Contents

1. Function Definitions
   • simple_probability
   • addition_rule
   • conditional_probability
   • bayes_theorem
2. Probability Distribution Examples
   • Binomial Distribution
   • Poisson Distribution
   • Normal Distribution
   • Exponential Distribution
   • Weibull Distribution
3. Contributing
4. Contact Information

Function Definitions

Here, define the key probability functions used in the notebook:

• simple_probability(event_outcomes, total_outcomes): Calculate the simple probability of an event.
• addition_rule(prob_A, prob_B, prob_A_and_B): Implement the addition rule for probabilities.
• conditional_probability(prob_A_and_B, prob_B): Define the conditional probability function.
• bayes_theorem(prob_A, prob_B_given_A, prob_B): Implement Bayes' Theorem.

Probability Distribution Examples

Discuss different types of probability distributions and provide examples:

• Binomial Distribution: Calculate probabilities and expected values for binomial variables.
• Poisson Distribution: Model the probability of a given number of events happening in a fixed interval of time or space.
• Normal Distribution: Understand the properties of normal distribution and calculate probabilities for different ranges of a normally distributed variable.
• Exponential Distribution: Model the time between events in a Poisson point process.
• Weibull Distribution: Understand the Weibull distribution for reliability analysis.

Contributing

We welcome contributions to this project. To contribute:

Fork the project. Create your feature branch (git checkout -b feature/AmazingFeature). Commit your changes (git commit -m 'Add some AmazingFeature'). Push to the branch (git push origin feature/AmazingFeature). Open a Pull Request.

Contact Information

For any questions or inquiries, please contact [email protected] - Subject: Github Repo Q,Probability-Probability-Distributions. For a full article walkthrough please visit > https://www.pyfi.com/blog < and learn more about PyFi's award winning Python for Finance courses which have been trusted by the top financial institutions in the United States and Canada multiple years running here >> https://www.pyfi.com <<