Beta Distribution

The beta distribution describes a probability distribution for a continuous random variable, say, X, that has the property 0 < X < 1. Thus, this distribution can be used for modeling proportions, percentages, and other doubly bounded continuous random variables that can be linearly transformed to the (0,1) interval.

Modeling doubly bounded variables requires a distribution that respects the variable’s bounds and is able to deal with the fact that central tendency and dispersion in such variables are not independent of each other. Moreover, the distribution shapes should include extreme skew and even bathtub shapes. The beta distribution has only two parameters, but it is capable of modeling a considerable variety of distribution shapes. Its flexibility and straightforward interpretability have made the beta distribution the most ...