What is probability of probabilistic concept in distribution
What is the probability of probabilistic concepts occurrence in distribution?
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When measuring risk we frequently use probabilistic concepts. But this need having a distribution for the randomness in investments and probability densities function as illustration. With adequate data or a decent adequate model we may have a good idea regarding the distribution of returns. Though, without the data, or while embarking into unknown territory we may be fully in the dark as to probabilities. This is particularly true when looking at scenarios that are incredibly rare, or have never even occurred before. For example, we may have a good concept of the results of an alien invasion; finally many scenarios have been explored in the movies.
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