Probability distribution functions (PDFs) describe the expected values of random variables drawn from a sample. The shape of the PDF explains how likely it is that an observed value might occur.

By using one of the common stock probability distribution methods of statistical calculations, an investor may determine the likelihood of profits from a holding.

While empirical distribution functions (EDFs) are sometimes used in exposure modeling, we chose to develop theoretical distributions (e.g., normal, uniform, lognormal) for the combined transfer ...