Robert F. Mulligan, Ph.D.
WESTERN CAROLINA UNIVERSITY COLLEGE OF BUSINESS Department of Economics, Finance, & International Business 
I. Random and Nonrandom Numbers 
A. An algebraic equation as an example of a nonrandom variable Slide 1: a Random Number Table

B. Gross characteristics of random number sequences1. Example: probability die Slide 2: A Nonrandom Counterexample

C. Poor randomization in an ESP experiment 
II. From Random Number Sequence to Random Variable
Slide 3: 1000 Observations of a Uniform Random Variable

A. Some examples of Random Number Sequences1. Multiplicative congruential sequences Slide 4: A Histogram of Slide 3

B. Converting a sequence into an R.V. 
III. The Normal or Gaussian Distribution
Slide 5: 1000 Observations of a Normal or Gaussian
Random Variable

A. Range and bounds Slide 6: A Histogram of Slide 5

B. The classic bell curve shape 
IV. The Cauchy Distribution
Slides 7 through 9: Transforming a Uniform R.V. into
a Cauchy R.V.

A. Range, bounds, and variance Slide 10: A Histogram of Slide 9

B. Normal v. Cauchy characteristics 
V. Deterministic v. Nondeterministic processes
Slide 11: A Manufacturing Process
Informational efficiency and very complex deterministic or chaotic processes 