• Descriptive
    • Moments
    • Concentration
    • Central Tendency
    • Variability
    • Stem-and-Leaf Plot
    • Histogram & Frequency Table
    • Data Quality Forensics
    • Conditional EDA
    • Quantiles
    • Kernel Density Estimation
    • Normal QQ Plot
    • Bootstrap Plot

    • Multivariate Descriptive Statistics
  • Distributions
    • Binomial Probabilities
    • Geometric Probabilities
    • Negative Binomial Probabilities
    • Hypergeometric Probabilities
    • Multinomial Probabilities
    • Dirichlet
    • Poisson Probabilities

    • Exponential
    • Gamma
    • Erlang
    • Weibull
    • Rayleigh
    • Maxwell-Boltzmann
    • Lognormal
    • Pareto
    • Inverse Gamma
    • Inverse Chi-Square

    • Beta
    • Power
    • Beta Prime (Inv. Beta)
    • Triangular

    • Normal (area)
    • Logistic
    • Laplace
    • Cauchy (standard)
    • Cauchy (location-scale)
    • Gumbel
    • Fréchet
    • Generalized Extreme Value

    • Normal RNG
    • ML Fitting
    • Tukey Lambda PPCC
    • Box-Cox Normality Plot
    • Noncentral t
    • Noncentral F
    • Sample Correlation r

    • Empirical Tests
  • Hypotheses
    • Theoretical Aspects of Hypothesis Testing
    • Bayesian Inference
    • Minimum Sample Size

    • Empirical Tests
    • Multivariate (pair-wise) Testing
  • Models
    • Manual Model Building
    • Guided Model Building
  • Time Series
    • Time Series Plot
    • Decomposition
    • Exponential Smoothing

    • Blocked Bootstrap Plot
    • Mean Plot
    • (P)ACF
    • VRM
    • Standard Deviation-Mean Plot
    • Spectral Analysis
    • ARIMA

    • Cross Correlation Function
    • Granger Causality
  1. Probability Distributions
  • Preface
  • Getting Started
    • 1  Introduction
    • 2  Why Do We Need Innovative Technology?
    • 3  Basic Definitions
    • 4  The Big Picture: Why We Analyze Data
  • Introduction to Probability
    • 5  Definitions of Probability
    • 6  Jeffreys’ axiom system
    • 7  Bayes’ Theorem
    • 8  Sensitivity and Specificity
    • 9  Naive Bayes Classifier
    • 10  Law of Large Numbers

    • 11  Problems
  • Probability Distributions
    • 12  Bernoulli Distribution
    • 13  Binomial Distribution
    • 14  Geometric Distribution
    • 15  Negative Binomial Distribution
    • 16  Hypergeometric Distribution
    • 17  Multinomial Distribution
    • 18  Poisson Distribution

    • 19  Uniform Distribution (Rectangular Distribution)
    • 20  Normal Distribution (Gaussian Distribution)
    • 21  Gaussian Naive Bayes Classifier
    • 22  Chi Distribution
    • 23  Chi-squared Distribution (1 parameter)
    • 24  Chi-squared Distribution (2 parameters)
    • 25  Student t-Distribution
    • 26  Fisher F-Distribution
    • 27  Exponential Distribution
    • 28  Lognormal Distribution
    • 29  Gamma Distribution
    • 30  Beta Distribution
    • 31  Weibull Distribution
    • 32  Pareto Distribution
    • 33  Inverse Gamma Distribution
    • 34  Rayleigh Distribution
    • 35  Erlang Distribution
    • 36  Logistic Distribution
    • 37  Laplace Distribution
    • 38  Gumbel Distribution
    • 39  Cauchy Distribution
    • 40  Triangular Distribution
    • 41  Power Distribution
    • 42  Beta Prime Distribution
    • 43  Sample Correlation Distribution
    • 44  Dirichlet Distribution
    • 45  Generalized Extreme Value (GEV) Distribution
    • 46  Frechet Distribution
    • 47  Noncentral t Distribution
    • 48  Noncentral F Distribution
    • 49  Inverse Chi-Squared Distribution
    • 50  Maxwell-Boltzmann Distribution
    • 51  Distribution Relationship Map

    • 52  Problems
  • Descriptive Statistics & Exploratory Data Analysis
    • 53  Types of Data
    • 54  Datasheets

    • 55  Frequency Plot (Bar Plot)
    • 56  Frequency Table
    • 57  Contingency Table
    • 58  Binomial Classification Metrics
    • 59  Confusion Matrix
    • 60  ROC Analysis

    • 61  Stem-and-Leaf Plot
    • 62  Histogram
    • 63  Data Quality Forensics
    • 64  Quantiles
    • 65  Central Tendency
    • 66  Variability
    • 67  Skewness & Kurtosis
    • 68  Concentration
    • 69  Notched Boxplot
    • 70  Scatterplot
    • 71  Pearson Correlation
    • 72  Rank Correlation
    • 73  Partial Pearson Correlation
    • 74  Simple Linear Regression
    • 75  Moments
    • 76  Quantile-Quantile Plot (QQ Plot)
    • 77  Normal Probability Plot
    • 78  Probability Plot Correlation Coefficient Plot (PPCC Plot)
    • 79  Box-Cox Normality Plot
    • 80  Kernel Density Estimation
    • 81  Bivariate Kernel Density Plot
    • 82  Conditional EDA: Panel Diagnostics
    • 83  Bootstrap Plot (Central Tendency)
    • 84  Survey Scores Rank Order Comparison
    • 85  Cronbach Alpha

    • 86  Equi-distant Time Series
    • 87  Time Series Plot (Run Sequence Plot)
    • 88  Mean Plot
    • 89  Blocked Bootstrap Plot (Central Tendency)
    • 90  Standard Deviation-Mean Plot
    • 91  Variance Reduction Matrix
    • 92  (Partial) Autocorrelation Function
    • 93  Periodogram & Cumulative Periodogram

    • 94  Problems
  • Hypothesis Testing
    • 95  Normal Distributions revisited
    • 96  The Population
    • 97  The Sample
    • 98  The One-Sided Hypothesis Test
    • 99  The Two-Sided Hypothesis Test
    • 100  When to use a one-sided or two-sided test?
    • 101  What if \(\sigma\) is unknown?
    • 102  The Central Limit Theorem (revisited)
    • 103  Statistical Test of the Population Mean with known Variance
    • 104  Statistical Test of the Population Mean with unknown Variance
    • 105  Statistical Test of the Variance
    • 106  Statistical Test of the Population Proportion
    • 107  Statistical Test of the Standard Deviation \(\sigma\)
    • 108  Statistical Test of the difference between Means -- Independent/Unpaired Samples
    • 109  Statistical Test of the difference between Means -- Dependent/Paired Samples
    • 110  Statistical Test of the difference between Variances -- Independent/Unpaired Samples

    • 111  Hypothesis Testing for Research Purposes
    • 112  Decision Thresholds, Alpha, and Confidence Levels
    • 113  Bayesian Inference for Decision-Making
    • 114  One Sample t-Test
    • 115  Skewness & Kurtosis Tests
    • 116  Paired Two Sample t-Test
    • 117  Wilcoxon Signed-Rank Test
    • 118  Unpaired Two Sample t-Test
    • 119  Unpaired Two Sample Welch Test
    • 120  Two One-Sided Tests (TOST) for Equivalence
    • 121  Mann-Whitney U test (Wilcoxon Rank-Sum Test)
    • 122  Bayesian Two Sample Test
    • 123  Median Test based on Notched Boxplots
    • 124  Chi-Squared Tests for Count Data
    • 125  Kolmogorov-Smirnov Test
    • 126  One Way Analysis of Variance (1-way ANOVA)
    • 127  Kruskal-Wallis Test
    • 128  Two Way Analysis of Variance (2-way ANOVA)
    • 129  Repeated Measures ANOVA
    • 130  Friedman Test
    • 131  Testing Correlations
    • 132  A Note on Causality

    • 133  Problems
  • Regression Models
    • 134  Simple Linear Regression Model (SLRM)
    • 135  Multiple Linear Regression Model (MLRM)
    • 136  Logistic Regression
    • 137  Generalized Linear Models
    • 138  Multinomial and Ordinal Logistic Regression
    • 139  Cox Proportional Hazards Regression
    • 140  Conditional Inference Trees
    • 141  Leaf Diagnostics for Conditional Inference Trees
    • 142  Conditional Random Forests
    • 143  Hypothesis Testing with Linear Regression Models (from a Practical Point of View)

    • 144  Problems
  • Introduction to Time Series Analysis
    • 145  Case: the Market of Health and Personal Care Products
    • 146  Decomposition of Time Series
    • 147  Ad hoc Forecasting of Time Series
  • Box-Jenkins Analysis
    • 148  Introduction to Box-Jenkins Analysis
    • 149  Theoretical Concepts
    • 150  Stationarity
    • 151  Identifying ARMA parameters
    • 152  Estimating ARMA Parameters and Residual Diagnostics
    • 153  Forecasting with ARIMA models
    • 154  Intervention Analysis
    • 155  Cross-Correlation Function
    • 156  Transfer Function Noise Models
    • 157  General-to-Specific Modeling
  • Model Building Strategies
    • 158  Introduction to Model Building Strategies
    • 159  Manual Model Building
    • 160  Model Validation
    • 161  Regularization Methods
    • 162  Hyperparameter Optimization Strategies
    • 163  Guided Model Building in Practice
    • 164  Diagnostics, Revision, and Guided Forecasting
    • 165  Leakage, Target Encoding, and Robust Regression
  • References
  • Appendices
    • Appendices
    • A  Method Selection Guide
    • B  Presentations and Teaching Materials
    • C  R Language Concepts for Statistical Computing
    • D  Matrix Algebra
    • E  Standard Normal Table (Gaussian Table)
    • F  Critical values of Student’s \(t\) distribution with \(\nu\) degrees of freedom
    • G  Upper-tail critical values of the \(\chi^2\)-distribution with \(\nu\) degrees of freedom
    • H  Lower-tail critical values of the \(\chi^2\)-distribution with \(\nu\) degrees of freedom

Table of contents

  • Distribution Selection Guide
  • Goodness-of-Fit: Quick Intuition
  • Statistical Measures for Probability Distributions

Probability Distributions

This part is divided into two classes of models. The first group covers discrete distributions (Bernoulli, Binomial, Geometric, Negative Binomial, Hypergeometric, Multinomial, and Poisson), where probabilities are attached to countable outcomes through a probability mass function (PMF). The second group covers continuous distributions (Uniform, Normal, Chi, Chi-squared, Student’s t, F, Exponential, Lognormal, Gamma, and Beta), where probabilities are computed from a probability density function (PDF) and integrated through the cumulative distribution function (CDF). This distinction matters because formulas, interpretation, and software functions differ between PMF-based and PDF-based models.

The continuous block is organised in three groups. The first group (Uniform through F) contains the general-purpose distributions that underpin classical inference and hypothesis testing. The second group — Exponential, Lognormal, Gamma, and Beta — extends coverage to applied modelling: waiting times and time-to-failure (Exponential, Gamma), quantities driven by multiplicative growth (Lognormal), and proportions or probabilities that are themselves uncertain (Beta). The third group extends the toolkit further with thirteen additional distributions: Weibull (flexible hazard rates in reliability), Pareto (power-law heavy tails), Inverse Gamma (Bayesian variance prior), Rayleigh (2D Gaussian magnitude), Erlang (integer-stage queuing), Logistic (sigmoid CDF, logistic regression foundation), Laplace (double-Exponential, L1 regression), Gumbel (extreme-value maxima), Cauchy (undefined moments, CLT failure), Triangular (PERT scheduling with min/mode/max), Power (bounded proportions, Beta special case), Beta Prime (unbounded odds-ratio model), and the Sample Correlation distribution (exact null distribution for testing \(\rho = 0\)). A fourth group provides seven further distributions that complete the relationship network: Dirichlet (multivariate Beta for compositional data), GEV (unified extreme-value family), Fréchet (heavy-tailed extremes), Noncentral t and Noncentral F (power analysis for t-tests and ANOVA), Inverse Chi-squared (Bayesian variance prior), and Maxwell-Boltzmann (molecular speeds, Chi with \(k = 3\)). These distributions connect back to the earlier groups through algebraic relationships, discrete analogs, and asymptotic links, reinforcing the coherence of the overall framework. An interactive map of all distribution relationships is available in 51  Distribution Relationship Map.

Distribution Selection Guide

Use the following table as a quick first-pass guide when selecting a distributional model.

Distribution Data type Support Typical use-case
Bernoulli Binary outcome (single trial) \(\{0,1\}\) One yes/no event (success/failure)
Binomial Count of successes in fixed \(n\) trials \(\{0,1,\dots,n\}\) Number of successes from repeated Bernoulli trials
Geometric Number of failures before first success \(\{0,1,2,\dots\}\) Attempts before first conversion/failure event
Negative Binomial Number of failures before \(r\)-th success \(\{0,1,2,\dots\}\) Attempts before reaching a target number of successes
Hypergeometric Count of successes in sample without replacement \(\{\max(0,n-(N-M)),\dots,\min(n,M)\}\) Audit/quality-control sampling from a finite population
Multinomial Counts across \(K\) categories with fixed \(n\) \(\{(x_1,\dots,x_K): \sum_k x_k=n\}\) Category-count vectors (survey choices, class counts)
Poisson Count data per interval \(\{0,1,2,\dots\}\) Number of events in time/space with approximately constant rate
Uniform \(U(a,b)\) Continuous measurement \([a,b]\) Random sampling over an interval; simulation mechanism
Normal \(N(\mu,\sigma^2)\) Continuous measurement \(\mathbb{R}\) Symmetric measurement noise, many aggregate phenomena
Chi \(\chi(n,\sigma)\) Continuous nonnegative magnitude \([0,\infty)\) Norm / root-mean-square quantities from normal components
Chi-squared \(\chi^2(n)\) Continuous nonnegative test statistic \([0,\infty)\) Variance-related statistics; sums of squared standard normals
Chi-squared \(\chi^2(n,\sigma)\) Continuous nonnegative (scaled) statistic \([0,\infty)\) Scaled chi-squared forms under alternative parameterization
Student t \(t(n)\) Continuous heavy-tailed statistic \(\mathbb{R}\) Mean inference when \(\sigma\) is unknown (especially small samples)
Fisher F \(F(m,n)\) Continuous positive ratio statistic \((0,\infty)\) Ratio of variances; ANOVA and regression F-tests
Exponential \(\text{Exp}(\lambda)\) Continuous nonneg waiting time \([0,\infty)\) Time between events; time to failure (constant hazard rate)
Lognormal \(\text{LnN}(\mu,\sigma^2)\) Continuous positive measurement \((0,\infty)\) Multiplicative phenomena: income, prices, concentrations
Gamma \(\text{Gamma}(k,\lambda)\) Continuous nonneg waiting time \((0,\infty)\) Waiting time until \(k\)-th event; flexible positive-skew model
Beta \(\text{Beta}(\alpha,\beta)\) Continuous bounded proportion \([0,1]\) Proportions, rates, probabilities; Bayesian prior for Binomial
Weibull \(\text{Weibull}(k,\lambda)\) Continuous nonneg lifetime \([0,\infty)\) Reliability; increasing hazard (\(k>1\)), constant (\(k=1\)), decreasing (\(k<1\))
Pareto \(\text{Pareto}(x_m,\alpha)\) Continuous power-law \([x_m,\infty)\) Income, city sizes, internet traffic: 80/20 rule
Inv. Gamma \(\text{InvGamma}(\alpha,\beta)\) Continuous nonneg scale \((0,\infty)\) Bayesian prior for variance \(\sigma^2\); reciprocal of Gamma variates
Rayleigh \(\text{Rayleigh}(\sigma)\) Continuous nonneg magnitude \([0,\infty)\) 2D Gaussian magnitude; wind speed; wireless signal envelope
Erlang \(\text{Erlang}(k,\lambda)\) Continuous nonneg (integer phases) \((0,\infty)\) Total service time across \(k\) Exponential stages; queuing systems
Logistic \(\text{Logistic}(\mu,s)\) Continuous symmetric \(\mathbb{R}\) Heavy-tailed Normal alternative; foundation of logistic regression
Laplace \(\text{Laplace}(\mu,b)\) Continuous symmetric \(\mathbb{R}\) L1-regression residuals; double-Exponential impulsive-noise model
Gumbel \(\text{Gumbel}(\mu,\beta)\) Continuous right-skewed \(\mathbb{R}\) Annual maxima: flood levels, wind speeds, maximum temperatures
Cauchy \(\text{Cauchy}(x_0,\gamma)\) Continuous heavy-tailed \(\mathbb{R}\) Ratio of two Normals; all moments undefined; CLT does not apply
Power \(\text{Power}(\alpha)\) Continuous bounded \([0,1]\) Bounded proportions skewed toward 0 or 1; Beta\((\alpha,1)\)
Beta Prime \(\text{BetaPrime}(\alpha,\beta,\theta)\) Continuous nonneg ratio \((0,\infty)\) Odds ratios; Bayesian scale priors; unbounded Beta generalization
Triangular \(\text{Triangular}(a,b,c)\) Continuous bounded \([a,b]\) PERT project risk; Monte Carlo when only min, max, mode are known
Corr. r \(\text{CorDist}(n)\) Sampling distribution \((-1,1)\) Testing \(H_0:\rho=0\); exact distribution of sample correlation under independence
Dirichlet \(\text{Dir}(\boldsymbol{\alpha})\) Multivariate continuous \(K\)-simplex Compositional data (market share, soil, diet); conjugate prior for Multinomial
GEV \(\text{GEV}(\mu,\sigma,\xi)\) Continuous extreme value Depends on \(\xi\) Block maxima modelling: floods, wind speeds, financial tail risk
Fréchet \(\text{Fréchet}(\alpha,m,s)\) Continuous heavy-tailed \((m,\infty)\) Maxima from heavy-tailed parents: extreme financial losses, catastrophic claims
Noncentral \(t\) \(t(\nu,\delta)\) Continuous \(\mathbb{R}\) Power analysis and sample-size planning for \(t\)-tests
Noncentral \(F\) \(F(d_1,d_2,\lambda)\) Continuous nonneg \([0,\infty)\) Power analysis for ANOVA and regression \(F\)-tests
Inv. Chi-sq \(\text{InvChi}^2(\nu)\) Continuous nonneg \((0,\infty)\) Bayesian conjugate prior for Normal variance \(\sigma^2\)
Maxwell-Boltzmann \(\text{MB}(a)\) Continuous nonneg \([0,\infty)\) Molecular speed distributions; Chi(\(k\!=\!3\)) with physical scaling
Gaussian Naive Bayes Supervised classification with continuous predictors Class labels with feature likelihoods on \(\mathbb{R}\) Class prediction using Bayes theorem with class-specific normal likelihoods

Goodness-of-Fit: Quick Intuition

When we say that a distribution “fits” data, we mean that the model-generated frequencies (or cumulative probabilities) are close to what we observed in the sample.

  • A visual check (histogram + fitted curve, QQ-plot, ECDF comparison) is a useful first pass.
  • A formal goodness-of-fit test quantifies mismatch and provides a p-value under a clear null hypothesis (“the data follow this distribution”).
  • In this handbook, the formal treatment is given in Hypothesis Testing: see Pearson Chi-Squared Test (binned/count-data goodness-of-fit) and 125  Kolmogorov-Smirnov Test (CDF-based goodness-of-fit).

Statistical Measures for Probability Distributions

The mathematical description of Probability Distributions depends on several statistical concepts. You should have (at least) an intuitive understanding of the following relevant concepts (which can be found in Descriptive Statistics) before proceeding:

  • Arithmetic Mean

    This is the most common measure of Central Tendency. Often this is simply referred to as “the mean” or “the average” which is obtained by dividing the sum of all observations by the number of observations.

  • Median

    This is another measure of Central Tendency which is defined as the “middle observation” after having sorted the data. The Median is not affected by extremely small or large values.

  • Mode

    The Mode can be interpreted as the value (of the dataset) which is most frequently observed. If every observation is thought of as a “vote” then the Mode is simply the “majority vote”.

  • Variance

    The Variance is a measure of variation or uncertainty. A high Variance implies that the observations are very different from each other (and the mean). When the Variance is low, the observed values are close to each other (and the mean).

  • Histogram

    If you are not familiar with the Histogram you are advised to read 56  Frequency Table, 61  Stem-and-Leaf Plot, and 62  Histogram first.

  • Skewness and Kurtosis

    Data are said to be skewed when the distribution (as can be visualized by the Histogram) is not symmetric. Kurtosis is a property which measures the thickness of the tails of the distribution (as can be visualized by the Histogram).

    In this handbook, the symbol \(g_2\) denotes regular kurtosis (not excess kurtosis), so a Normal Distribution has \(g_2 = 3\).

  • Centered and Uncentered Moments

    Moments are mathematical constructs which can be used to characterize distributions and derive other statistics (such as the Arithmetic Mean, Variance, Skewness, and Kurtosis).

11  Problems
12  Bernoulli Distribution

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