Probability distribution
Probability distribution is a listing, chart, or graph of all possible outcomes, such as expected rates of return, with a probability assigned to each outcome.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Probability distribution. A listing, chart, or graph of all possible outcomes, such as expected rates of return, with a probability assigned to each outcome.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Probability distribution. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
