Continuous Scenarios
In economics and finance, it is more likely that the set of possible outcomes is continuous (a numerical or currency value between 0 and infinity). In this case, simplifying assumptions are made about the distribution of possible outcomes. Either a continuous probability function is constructed, or a discrete probability distribution is assumed
Read more about this topic: Expected Return
Famous quotes containing the words continuous and/or scenarios:
“For good and evil, man is a free creative spirit. This produces the very queer world we live in, a world in continuous creation and therefore continuous change and insecurity.”
—Joyce Cary (1888–1957)
“The taste for worst-case scenarios reflects the need to master fear of what is felt to be uncontrollable. It also expresses an imaginative complicity with disaster.”
—Susan Sontag (b. 1933)