Abstract
The future is uncertain, and this uncertainty is fundamental to economics and finance since all policies and plans for the economy, as well as all cash flows of financial instruments, are impacted by an uncertain future. The mathematical description of uncertainty is the subject matter of probability theory, which is built on the concept of the random variable. This Chapter introduces some of the key ideas of probability and important examples of random variables, both discrete and continuous, are discussed in some detail.
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© 2020 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
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Baaquie, B.E. (2020). Random Variables. In: Mathematical Methods and Quantum Mathematics for Economics and Finance. Springer, Singapore. https://doi.org/10.1007/978-981-15-6611-0_8
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DOI: https://doi.org/10.1007/978-981-15-6611-0_8
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