The other distinction is between the probability density function (PDF) and the cumulative distribution function. The PDF is the probability that our random variable reaches a specific value (or ...

The probability density function measures continuous variables. Having said that, it's important to note that stock and investment returns are generally not continuous random variables.

In this paper, we propose a functional linear regression model in the space of probability density functions. We treat a cross-sectional distribution of individual earnings as an infinite dimensional ...