55 PDF vs CDF exercises

This video tests your understanding of Probability Density Functions (PDFs) and Cumulative Distribution Functions (CDFs) in econometrics. We revisit the intuitive difference between PDF and CDF and then apply this knowledge to common mistakes made in statistics and econometrics courses. Learn why the probability of a random variable equaling an exact value is zero and how to calculate probabilities for ranges using both PDF areas and CDF differences. We'll explore the graphical representation of CDFs and the crucial distinction between PDF height and probability area. Understanding this core concept is vital for making sense of statistical inferences. Subscribe to @AxiomTutoringCourses for more econometrics insights.