Probability Distributions: Predicting the Future (Sort Of)

Probability Distributions: Predicting the Future (Sort Of)

Introduction: Life is One Big Probability Game 🎲

Let’s be honest—life is full of uncertainty. Will it rain tomorrow? Will your laptop crash 5 minutes before your deadline? Will you ever stop binge-watching shows instead of studying?

We can’t predict the future with 100% accuracy, but probability distributions help us make educated guesses about what’s likely to happen. They are the reason why:

  • Airlines overbook flights (because they know some passengers won’t show up ✈️).
  • Netflix recommends shows you’ll probably love 🎥.
  • Casinos always win (yes, the house always has the edge 🎰).

Probability distributions help us model randomness, so we can make sense of uncertainty—and, more importantly, use it to our advantage. Let’s break it down! 🚀


1. What’s a Probability Distribution?

Imagine you’re throwing a party. You don’t know exactly how many people will show up, but you can make an educated guess:

  • 50% chance 5–7 people come.
  • 30% chance more than 7 come.
  • 20% chance you end up alone with a tub of ice cream.

Look at you being an analyst 🤩! You just created a probability distribution! 🎉

A probability distribution is just a way to map out all possible outcomes and their likelihood. It helps answer questions like:

  • How often will I get heads if I flip a coin 10 times?
  • What are the chances my Uber ride takes more than 15 minutes?
  • If I eat questionable omena, what’s the probability I regret my life choices later? (Spoiler: High, sorry omena lovers😂)


2. Discrete vs. Continuous Distributions:

Probability distributions fall into two categories:

  • Discrete: Used when there are countable outcomes (e.g., number of goals in a football match ⚽).
  • Continuous: Used when values fall in a range (e.g., the time it takes for your coffee to cool down ☕).

Let’s dive into the most important ones!


3. Discrete Probability Distributions: When Outcomes Are Countable

The Binomial Distribution: Success or Failure, No In-Between

The binomial distribution models situations where you have two possible outcomes (success/failure, yes/no, heads/tails).

📌 Real-world examples: ✅ The number of customers who buy something after visiting your website. ✅ The number of free throws a basketball player makes in 10 shots. ✅ The number of times your cat actually listens to you in a day (probably zero).

💡 Example: If you flip a coin 10 times, what’s the probability of getting exactly 6 heads? The binomial distribution has your back.


The Poisson Distribution: When Rare Events Happen More Than You Expect

The Poisson distribution models how often rare events happen in a fixed period or space.

📌 Real-world examples: ✅ The number of customers who enter a shop per hour. ✅ The number of typos in an email you swore you proofread. ✅ The number of times you randomly run into an ex (way more than you’d like).

💡 Example: If an emergency room gets 2 patients per hour on average, the Poisson distribution can predict the chances of getting exactly 5 patients in the next hour.


4. Continuous Probability Distributions: When Outcomes Are on a Sliding Scale

The Normal Distribution

The normal distribution (aka the bell curve) shows up everywhere in nature and human behavior.

📌 Real-world examples: ✅ Human heights, IQ scores, exam scores—all roughly follow a bell curve. ✅ The number of hours you procrastinate before starting an assignment. ✅ The time it takes for you to text back (unless you’re one of those "seen at 2:45 PM, replied at 2:46 PM" people).

💡 Example: If the average IQ is 100 with a standard deviation of 15, then:

  • 68% of people have an IQ between 85 and 115.
  • 95% of people have an IQ between 70 and 130.
  • If your IQ is 145+, congrats—you’re a genius!


The Exponential Distribution

The exponential distribution models the time between independent events.

📌 Real-world examples: ✅ The time between customer support calls at a tech company. ✅ The time until your next traffic light turns red (always when you’re in a rush). ✅ The time it takes for someone to double-text you after being left on read.

💡 Example: If a bus arrives every 10 minutes on average, the exponential distribution helps calculate how long you might wait if you just missed one.


5. The Central Limit Theorem: Why Everything Becomes Normal (Eventually)

The Central Limit Theorem (CLT) states that if you take enough random samples, their average will start following a normal distribution, no matter how weird the original data is.

📌 Why this is mind-blowing:

  • It means we can use normal distribution formulas on almost anything.
  • This is why grades, test scores, and even stock prices tend to follow a bell curve.
  • It’s the reason fast food chains can estimate wait times accurately.

💡 Example: If you randomly sample 30 people from different cities and measure their average height, the distribution of those averages will be normal—even if the original population heights were all over the place.


Conclusion: Probability Distributions Rule the World 🌍

Whether you realize it or not, probability distributions are behind most decisions in life. They help businesses plan, scientists analyze trends, and everyday people (like us) make better predictions.

📌 Key Takeaways:

Binomial = Success/failure situations (e.g., coin flips). ✅ Poisson = Counting rare events (e.g., how often you see your neighbor at the grocery store). ✅ Normal = Bell curve of life (e.g., heights, IQ, test scores). ✅ Exponential = The waiting game (e.g., time between texts). ✅ Central Limit Theorem = Everything trends toward normality when sampled enough times.

🔥 Next up: In the next article, I will talk about Regression and Correlation—how to measure relationships between variables and figure out if one thing actually causes another (or if it’s just a coincidence). Stick around for that one! ✨


Linara Safina

SOL Student at Inha University in Tashkent

2mo

Thanks for sharing 😊

Like
Reply
Joel Kibe CPA, Acc.Dir

Director, Client Operations @ MUFG | Alternative Investments industry

2mo

Insightful. Never thought of life in terms of probabilities. Guess we are all analysts of some sort 🤔

To view or add a comment, sign in

More articles by Joan Waweru

Insights from the community

Others also viewed

Explore topics