Beta Distribution
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ScribdTranslationsBeta Distribution
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ScribdTranslationsBETA DISTRIBUTION
It is a distribution that allows generating a wide variety of profiles and is mainly used to represent
physical variables whose values are restricted to an interval of finite length and to obtain certain
quantities that are known as tolerance limits (in Non-parametric Inference).
The beta distribution is a family of continuous probability distributions defined on the interval [0,1]
with two positive parameters that determine the shape, typically noted as α and β that appear as
exponents of the random variable and control the shape. . The beta distribution can take many
forms depending on the values of α and β. It is generally used when there is no solid historical data
on which to base the estimation of activities.
An absolutely continuous random variable X is defined by
f(x) = r ( a + P) xa-1 (1_ x)s -1 xe(0,1)
r(a).r(p)
mathematical hope of the va X ~P(a,p): E[X]=.4s
Variance goes X ~ (0, P): 2= Var(X) =-------------------- %P----------------
v 2
• ' (a + p) . (a + p + 1)
Density Function: In probability theory, the probability density function, density function, or simply
density of a continuous random variable describes the relative probability according to which said
random variable will take a certain value.
ORIGIN
What is known today as the beta distribution had been used by Thomas Bayes as the posterior
probability parameter of the Bernoulli distribution in his 1763 work on inverse probability. The
beta distribution gained prominence due to its membership in the Pearson system and was known
until the 1940s as the Pearson type I distribution. Therefore, it was initially created under the name
of Pearson type I distribution, by Karl Pearson and with the passage of time its name changed in
1973 thanks to a mathematician named Ballestero who, in 1973, related it to a method used in his
General Theory Valuation, called, by Ballestero and Caballer (1982), beta distribution method.
CONDITIONS TO APPLY THE BETA DISTRIBUTION
The beta distribution is used when the following conditions are met:
> The minimum and maximum range must be between 0 and a positive value.
> The shape can be specified with two positive values, alpha and beta. If the parameters are
equal, the distribution is symmetric. If one of the parameters is 1 and the other parameter
is greater than 1, the distribution is J-shaped. If alpha is less than beta, the distribution is
said to be positively skewed (most values approach the minimum value). If alpha is greater
than beta, the distribution is negatively skewed (most values are close to the maximum
value).
EXAMPLES AND/OR APPLICATIONS
It is typically used to represent variability over a fixed range and uncertainty in the probability of
an event occurring. It is also used to describe empirical data and predict the random behavior of
percentages and fractions in addition to representing the reliability of a company's devices. Some
more specific examples include:
- Fraction of time that a piece of equipment is under repair.
- Proportion of defective parts in a lot.
- Proportion of a family's spending on food with respect to total expenses.
- The share of a company's production with respect to the total produced in that sector.
Practical examples
characteristics
Variation field: 0 < x < 1
Parameters:
a : shape parameter, a>0
B: shape parameter, B>0
Yes and so if the density function of X is represented by the expression
<
20-I(1)BI B(a,B) • 2
0, cu any other case,
where a beta function is defined by
=í go-l( —2)8-1 dx = (18, parac,s > O
Jo —ep
The mean and variance of a beta distribution in which the parameters and are
r± - 0rB
u = -------------- and g- = -----------------------------------------------
a+0 {a +B)2(c + B+ 1]
GLOSSARY
Probability Distribution: It refers to all the possible results that a random variable may have, that
is, it describes the behavior of said variable within a range of values or possible results. The
probability distribution allows us to assign to each event the probability that it will occur or be
successful, for example, conducting experiments, studies on the progress of a company, etc. With
the study of probabilities, a way has been allowed to standardize events and processes that occur
at random. This has been achieved by estimating the frequencies in which a specific result is
obtained.
