### What is a 'Random Variable'

A random variable is a variable whose value is unknown or a function that assigns values to each of an experiment's outcomes. Random variables are often designated by letters and can be classified as discrete, which are variables that have specific values, or continuous, which are variables that can have any values within a continuous range.

### Explaining 'Random Variable'

Consider an experiment where a coin is tossed three times. If X represents the number of times that the coin comes up heads, then X is a discrete random variable that can only have the values 0,1,2,3 (from no heads in three successive coin tosses, to all heads). No other value is possible for X.

An example of a continuous random variable would be an experiment that involves measuring the amount of rainfall in a city over a year, or the average height of a random group of 25 people.

The covariance sign of transformed random variables with applications to economics and finance
A number of problems in economics, finance and insurance rely on determining the sign of the covariance of two transformations of a random variable. The classical Chebyshev's inequality offers a powerful tool for solving the problem, but it assumes that the … The application of continuous-time random walks in finance and economics
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A number of problems in economics, finance and insurance rely on determining the sign of the covariance of two transformations of a random variable. The classical Chebyshev's inequality offers a powerful tool for solving the problem, but it assumes that the … Herd behavior and aggregate fluctuations in financial markets
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A number of problems in economics, finance and insurance rely on determining the sign of the covariance of two transformations of a random variable. The classical Chebyshev's inequality offers a powerful tool for solving the problem, but it assumes that the … A multi-point distributed random variable accelerator for Monte Carlo simulation in finance
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A number of problems in economics, finance and insurance rely on determining the sign of the covariance of two transformations of a random variable. The classical Chebyshev's inequality offers a powerful tool for solving the problem, but it assumes that the …

#### What type of experiments do continuous random variables represent?

Continuous random variables represent experiments where the results can take on any value within a range.

#### What is a random variable?

A random variable is a variable whose value is unknown or a function that assigns values to each of an experiment's outcomes.

#### What type of experiments do discrete random variables represent?

Discrete random variables represent experiments where the results can only have specific values.

#### How does one measure rainfall in a city over time with respect to time?

One measures rainfall in a city over time by measuring the amount of rainfall in that city at different points in time. This measurement will be used to determine how much rain fell during that period of time.

#### Are there discrete and continuous random variables?

Yes, there are both types of random variables.