Continuous uniform distribution formula

[bpdulog]

We are provided with the following CDF formula for a continuous uniform distribution:

(a-b1)/(b2-b1)

If b1 represents the lower bound, per the reading, then what does a represent?

 

[David Harper CFA FRM]

Hi @bpdulog it's a cumulative distribution function (CDF) and, in the case of the uniform distribution, it's really just a simple proportion: Pr[X≤a] = (a - b1)/(b2-b1). For example if b2 = 10 and b1 = 5, then Pr[X ≤ 7] =(7 - 5)/(10 - 5) = 2/5 = 40%. Or Pr[X≤9] = (9-5)/(10-5) = 4/5 = 80%. Thanks,