Probability density functions are a statistical measure used to gauge the likelihood that an investment will have returns that fall within a range of values. Financial analysts can also use a PDF ...

Nonparametric estimation of probability density functions, both marginal and joint densities, is a very useful tool in statistics. The kernel method is popular and applicable to dependent data, ...

Kernel Density Estimation (KDE): A nonparametric method to estimate the probability density function of a random variable by averaging over locally weighted contributions of each data point.

We consider several transforms related to first-passage times, e.g. for the M/M/1 queue, reflected Brownian motion and Lévy processes. Some of the associated probability density functions involve ...

A New Framework to Estimate the Risk-Neutral Probability Density Functions Embedded in Options Prices Author/Editor: Kevin C Cheng Publication Date: August 1, 2010 Electronic Access: Free Download.