 1. Exploratory Data Analysis
1.3. EDA Techniques

Probability Distributions

Probability Distributions Probability distributions are a fundamental concept in statistics. They are used both on a theoretical level and a practical level.

Some practical uses of probability distributions are:

• To calculate confidence intervals for parameters and to calculate critical regions for hypothesis tests.
• For univariate data, it is often useful to determine a reasonable distributional model for the data.
• Statistical intervals and hypothesis tests are often based on specific distributional assumptions. Before computing an interval or test based on a distributional assumption, we need to verify that the assumption is justified for the given data set. In this case, the distribution does not need to be the best-fitting distribution for the data, but an adequate enough model so that the statistical technique yields valid conclusions.
• Simulation studies with random numbers generated from using a specific probability distribution are often needed. 