Econ 70 Fall 2004

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Joint Discrete Probability Distributions

We used an example of two stocks that each might be worth either 10 or 20 to illustrate some concepts.

Postive correlation:

Zero correlation:

Negative correlation:

What we learned (by example):

The Poisson Distribution

We used the distribution of first-round NBA draft choices taking the floor for a randomly selected Dean Smith basketball team to illustrate the Poisson distribution.

Dean had 26 first-round draft choices in 36 years. If they each played for 3 years, the average per year was 2.2.

Here is the distribution of what opposing teams faced.