Probability Density Functions

This lesson gives an intuitive introduction to the probability density function of a univariate continuous random variable.

For a continuous random variable, the probability density function at a specific point can be thought of as the relative likelihood of observing values in a very small interval containing that specific point.

We use an example starting with the construction of #histogram of home sale prices data. We added constraints to the bar heights of the histogram so that the area covered by the histogram adds up to 1. This gives us density-based histogram.

As we decrease the bin interval length of the histogram, we were able to approximate the probability density function of home sale prices.