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LOR15: The cumulative distribution function of a random variable

LOR15: The cumulative distribution function of a random variable

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 In this episode, we continue laying the foundations of our mathematical treatment of risk. In particular, we introduce the cumulative distribution function, or CDF, as a tool for describing the probabilistic behavior of a random variable. We illustrate this with a simple example and discuss the basic characteristics of this interesting non-decreasing function, which will soon help us address very practical matters.
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