Uses of probability distribution in system simulation are as follows:
To calculate confidence intervals for parameters and to calculate critical regions for hypothesis tests.
To determine a reasonable distribution model for data.
Statistical intervals and hypothesis tests are often based on specific distribution assumptions. Before computing an intervals or test based on a distributional assumptions The assumptions is justified for the given data set. In this case, the distribution dose not need to be the best fitting distribution for the data, but an adequate enough model so that the statistical technique yields valid conclusions.
Simulations studies with random numbers generated from using a specific probability distribution are often needed.
Examples of discrete probability distribution:
The Poisson Distribution
The Bernoulli Distribution
The Binomial Distribution
The Geometric Distribution
The Negative Binomial Distribution
Examples of Continuous Distribution:
Log normal Distribution