Difference between revisions of "Random Variable Representation"
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== Definition == | == Definition == | ||
| − | '''Random Variable Representation''' is the computational representation of a [[Random Variable]] concept. | + | '''Random Variable Representation''' is the computational representation of a [[Random Variable]] concept, e.g. in a form that can be used in digital computers. |
| − | == | + | == Representation Forms == |
| − | + | Depending on its nature, a random variable may | |
* explicity specified through some functional form (see. e.g. [[Risk Distribution]]) | * explicity specified through some functional form (see. e.g. [[Risk Distribution]]) | ||
| − | * defined implicitly as the compound outcome of a complex system (realized in practices via [[Simulation Models]]) | + | * defined (implicitly) as the compound [[Sampling ]] outcome of a complex system (realized in practices via [[Simulation Models]]), in which case the representation is only as accurate as the [[Sampling]] quality |
| + | * specified as a [[Histogram]] that is either exact (for discrete random variables) or constructed as a sample | ||
| + | == Issues and Challenges == | ||
| + | * Mathematically random variables may be continuous or have continuous support. In computer representations some discrete approximation must be applied | ||
| + | * Mathematically random variables may have a range extending to infinity. In computer representations some finite approximation must be used as a proxy | ||
| + | * Representing random variables via a sample may be materially inadequate to capture low-likelihood realizations | ||
[[Category:Quantitative Tools]] | [[Category:Quantitative Tools]] | ||
Latest revision as of 15:13, 16 April 2021
Definition
Random Variable Representation is the computational representation of a Random Variable concept, e.g. in a form that can be used in digital computers.
Representation Forms
Depending on its nature, a random variable may
- explicity specified through some functional form (see. e.g. Risk Distribution)
- defined (implicitly) as the compound Sampling outcome of a complex system (realized in practices via Simulation Models), in which case the representation is only as accurate as the Sampling quality
- specified as a Histogram that is either exact (for discrete random variables) or constructed as a sample
Issues and Challenges
- Mathematically random variables may be continuous or have continuous support. In computer representations some discrete approximation must be applied
- Mathematically random variables may have a range extending to infinity. In computer representations some finite approximation must be used as a proxy
- Representing random variables via a sample may be materially inadequate to capture low-likelihood realizations
