Probability functions: pdf, CDF and inverse CDF (FRM T2-1)

[Here is my XLS @ trtl.bz/2AgvfRo] A function is a viable probability function if it has a valid CDF (i.e., is bounded by zero and one) which is the integral of the probability density function (pdf). The inverse CDF (aka, quantile function) returns the quantile associated with a probability, q = F^(-1)(p), whereas the CDF returns the probability associated with a quantile: p = F(q). As mentioned, the =POISSON_INV(.) is not built into excel. Rather, it is available from the wonderful and free add-on published by Charles Zaiontz and available at www.real-statis.... Discuss this video here in our FRM forum: trtl.bz/2O7chQg.
Subscribe here www.youtube.co...
to be notified of future tutorials on expert finance and data science, including the Financial Risk Manager (FRM), the Chartered Financial Analyst (CFA), and R Programming!
If you have questions or want to discuss this video further, please visit our support forum (which has over 50,000 members) located at bionicturtle.co...
You can also register as a member of our site (for free!) at www.bionicturt...
Our email contact is [e-mail] (I can also be personally reached at [e-mail])
For other videos in our Financial Risk Manager (FRM) series, visit these playlists:
Texas Instruments BA II+ Calculator
• Texas Instruments BA I...
Risk Foundations (FRM Topic 1)
• Risk Foundations (FRM ...
Quantitative Analysis (FRM Topic 2)
• Quantitative Analysis ...
Financial Markets and Products: Intro to Derivatives (FRM Topic 3, Hull Ch 1-7)
• Financial Markets and ...
Financial Markets and Products: Option Trading Strategies (FRM Topic 3, Hull Ch 10-12)
• Financial Markets and ...
FM&P: Intro to Derivatives: Exotic options (FRM Topic 3)
• FM&P: Intro to Derivat...
Valuation and Risk Models (FRM Topic 4)
• Valuation and RIsk Mod...
Coming Soon ....
Market Risk (FRM Topic 5)
Credit Risk (FRM Topic 6)
Operational Risk (FRM Topic 7)
Investment Risk (FRM Topic 8)
Current Issues (FRM Topic 9)
For videos in our Chartered Financial Analyst (CFA) series, visit these playlists:
Chartered Financial Analyst (CFA) Level 1 Volume 1
• Level 1 Chartered Fina...
#bionicturtle #risk #financialriskmanager #FRM #finance #expertfinance
Our videos carefully comply with U.S. copyright law which we take seriously. Any third-party images used in this video honor their specific license agreements. We occasionally purchase images with our account under a royalty-free license at 123rf.com (see www.123rf.com/... we also use free and purchased images from our account at canva.com (see about.canva.co.... In particular, the new thumbnails are generated in canva.com. Please contact [e-mail] or [e-mail] if you have any questions, issues or concerns.

[@mayankawasthi6839]

great video.i learned a lot from it.i would like to know what work do u do and where?

[@bionicturtle]

Thank you for watching! Bionic Turtle is an FRM study prep program. We provide study materials for the FRM exam on our website www.bionicturtle.com

[@jayjiang9416]

You teach better than some professors in the university.

[@arturoaramburo9365]

Is there a formula to obtain the CDF directly when SD=1 and mean=0?
Just wondering if there’s a way besides the “=NORM.S.DIST(XX,TRUE)”
Thank you..

[@mortezaabdipour5584]

BTW, Thanks for sharing the knowledge.

[@alifallah1939]

Nice video and good explanation but a bit lengthy and too much of repeating

[@bionicturtle]

okay i appreciate the constructive feedback, thank you

[@divyas0510]

Really easy to understand

[@bionicturtle]

Thank you! We always appreciate this kind of feedback!

[@devon5694]

Brilliantly explained.

[@bionicturtle]

oh gosh thank you!

[@electronbob6676]

Great video! Would love to see you do a similar video using lognormal distribution .... thanks!

[@rogelioasco6908]

Thanks for sharing. it was very useful for me.

[@bionicturtle]

Thank you for watching!

[@dvs8321]

Great presentation and thanks for sharing it.

[@bionicturtle]

Thank you for the support!

[@vkittu1989]

Count vs Measured. Thanks a lot.

[@sbakshi9515]

how to calculate N'(d)

[@Blueshockful]

Thanks so much for sharing

[@ruili6762]

Great example, I understand this concept well. Thanks!

[@bionicturtle]

Thank you for watching!

[@andresjimenezbonilla2532]

Thanks for sharing it!!

[@bionicturtle]

Thank you for watching!

[@mortezaabdipour5584]

Is it really true when we ask the probability for an interval from CDF not PDF ?

[@bionicturtle]

as i'm sure you know, for a continuous distribution P{a < X < b) = integral [a,b] of the f(x) pdf, or equivalently, F(b) - F(a) of the CDF

[@mortezaabdipour5584]

Yes right.

[@mohamedhassan8886]

good one but y cant you do problems involving temperature, strings and time intervals too