A Probability Density Function (PDF) is a mathematical function that describes the likelihood of a continuous random variable taking on a specific value. Unlike discrete variables, continuous variables can take on an infinite number of values, so the probability of any single value is technically zero. Instead, the PDF provides the probability that the variable falls within a particular range.
Applications/Use Cases:
- Statistics: Analyzing data distributions to understand patterns and variability.
- Physics: Modeling phenomena like particle positions and velocities.
- Finance: Assessing the risk of asset returns over a range of possible outcomes.