Exponential distribution

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Exponential ditribution.

The exponential probability distribution is a continuous function in the domain of positive reals, which is suitable to represent the time between two events that are distributed according to the Poisson distribution. For example, the elapse until a trade receives its first customer of th day. The exponential distribution is a particular case of the Gamma distribution where shape parameter takes value 1.

Input parameters:

  • Mean value. This parameter must be a real number > 0 and defines the position of the mean value of the distribution. Since this is a case of the Gamma distribution, in terms of the latter, the mean would correspond to the Scale parameter if a Gamma with shape = 1 is used. In this case, the resulting probability distribution will be the same.

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