Exponential distribution - a distribution used for continuous data denoted by Exp(λ).
Exponential distribution conditions
Randomly occurring events
Independent events
Constant average rate
Specific time
+ negative exponential curve
How do we calculate exact probabilities?
N/A as always = 0
How do we calculate cumulative probabilities?
Using the formula P(a<X<b) =e−λa - e−λb
Exam technique for exponential
if we are asked if the sample follows exponential we calculate the mean and variance and then estimate λ for each. If similar the exponential is suitable
Exponential has no memory so we don't have to consider previous occurrences
