Plotting a variable with discrete and continuous elements | Vose Software

Plotting a variable with discrete and continuous elements

If a risk event does not occur, we could say it has zero impact, but if it occurs it will have an uncertain impact. For example: a fire may have a 20% chance of occurring, and if it does, will incur $Lognormal(120000,30000). We could model this as:


or better still:


Running a simulation with this variable as an output we would get the following, highly uninformative, relative frequency histogram plot (shown with different numbers of bars):

There really is no useful way to show such a distribution as a histogram, because the spike at zero (in this case) requires a relative frequency scale, whilst the continuous component requires a continuous scale. A cumulative distribution, however, would produce the following plot which is meaningful:



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