FAQ About Stats related questions
What are the challenges of fitting a probability distribution to data?
There are a number of challenges that can be encountered when fitting a probability distribution to data. Some of these challenges include:
* The data may not be a perfect fit for any single distribution.
* The data may be noisy, which can make it difficult to identify the true distribution.
* The data may be incomplete, which can also make it difficult to identify the true distribution.
How do you use probability distributions to make predictions?
Probability distributions can be used to make predictions about future events. For example, an insurance company might use the normal distribution to predict the number of claims that they will receive in the next year. The insurance company could then use this information to set premiums that are high enough to cover the cost of claims, but not so high that they are unaffordable for customers.
