Elements of probability theory
|
|
- Rafe Fox
- 5 years ago
- Views:
Transcription
1 The role of probability theory in statistics We collect data so as to provide evidentiary support for answers we give to our many questions about the world (and in our particular case, about the business world). As we have seen, our questions often concern themselves with very large populations which are nearly impossible to census, so when we collect data, we must restrict ourselves to rather small samples from these populations. A natural question that arises is How do we select a particular individual from the population of interest to become part of the sample we measure? It turns out that random sampling from a population is the best method to employ (this fact will be analyzed later in the course; see Chapter 7 of the textbook). Consequently, the important statistical features of the sample we draw are inherently unpredictable. Nonetheless, there are general conclusions that can be made, even of uncertain characteristics like the properties of a randomly selected sample; these kinds of conclusions are precisely what probability theory is designed to handle. So we devote some time to studying its basic principles. 1
2 Elements of probability theory (probabilistic) experiment situation in which one of a collection of possible outcomes could occur, but precisely which one cannot be predicted with certainty sample space (S) the exhaustive collection of all the possible outcomes of some probabilistic experiment event (A, B,... ) any result of the experiment described by one or more possible outcomes from the sample space probability (P (A)) measure of the likelihood of an event; its long-run relative frequency subjective make an educated guess empirical calculate the fraction of attempted trials in which the event has occurred a priori use a mathematical model to describe the likelihood of occurrence 2
3 odds alternative method for describing likelihood of occurrence of an event If P (A) is the probability that event A occurs, then the odds in favor of A is given as the ratio P (A) to P (A c ), while the odds against A is the inverse ratio P (A c ) to P (A) Conversely, if the odds in favor of event A is stated as a to b, then P (A) = a a+b, whereas if the odds against event A is stated as a to b, then P (A) = Venn diagram b a+b diagram of the sample space of an event (represented by a rectangle) that depicts the relations among various collections of outcomes (represented by circles which might overlap); a very useful tool to help in the computation of probabilities 3
4 disjoint/mutually exclusive events events which have no outcomes in common, that is, can never occur simultaneously independent events events one of whose outcomes has no influence on the outcomes of the other, that is, the likelihood of the occurrence of one is unaffected by whether the other takes place or not 4
5 Formal rules of probability 1. Probability measures likelihood: P (A) lies between 0 and 1 for any event A. 2. Something has to happen: Where S is the event consisting of the entire sample space, P (S) = Equally likely outcomes have equal probabilities: If there are n equally likely possible outcomes and event A includes exactly k of these outcomes, then P (A) = k/n. 4. Complementary events have complementary probabilities: P (A c ) = 1 P (A). 5. Addition rule for disjoint events: If A and B are disjoint events, then their total probability is P (A B) = P (A or B) = P (A) + P (B). 6. Multiplication rule for independent events: If A and B are independent events, then their joint probability is P (A B) = P (A and B) = P (A) P (B). 5
6 More probability rules General Addition Rule If A and B are any two events, then P (A or B) = P (A) + P (B) P (A and B). conditional probability If A and B are any two events, then the conditional probability P (B A) of event B given event A is the frequency of the outcomes in B conditioned by the outcomes in A; that is, (rel.) freq. of outcomes in B also in A P (B A) = (rel.) freq. of outcomes in A which is equivalent to the definition: P (B A) = P (A B). P (A) General Multiplication Rule If A and B are any two events, then P (A B) = P (A) P (B A). 6
7 independent events Events are independent precisely when their conditional probabilities are the same as their unconditional probabilities; that is, when either one (and thus both) of these formulas hold: contingency table P (B A) = P (B), P (A B) = P (A). Paired qualitative data is organized in a table whose columns list the categories of one variable x and whose rows list the categories of the other variable y; each cell of the table counts the joint frequency of individuals who simultaneously fall into both that column and row category tree diagram a diagram of the outcomes of pairs of successive events, in which the first level of branches represent outcomes of one event and the second layer outcomes of the second; useful for working with conditional probabilities 7
8 total probability rule To study the influence on event A of event B, it is useful to separate those outcomes described by A into those which are common to B, namely the joint event A B, and those disjoint from B, which is the joint event A B c ; from this it follows that P (A) = P (A B) + P (A B c ) = P (A B)P (B) + P (A B c )P (B c ) prior probability the probability P (A) of some event A before consideration of new information in the guise of the occurrence of a second event B; in other words, the unconditional probability of A relative to B posterior probability the conditional probability P (A B) of event A, evaluated after consideration of new information in the guise of the occurrence of event B 8
9 The General Multiplication Rule implies that P (A B) P (B) = P (A B) = P (B A) P (A), but the Total Probability Rule states that P (B) = P (A B) + P (A c B) = P (B A)P (A) + P (B A c )P (A c ), so we deduce the formula P (A B) [P (B A)P (A) + P (B A c )P (A c )] = P (A B) from which follows = P (B A) P (A) Bayes Theorem a formula that describes how to find the posterior probability P (A B) involving a pair of events A and B when the probability of the conditional event B is not known: P (A B) = P (B A)P (A) P (B A)P (A) + P (B A c )P (A c ) 9
10 Bayes Theorem can be generalized to include situations in which the prior information is presented not in the form of a single event A and its complement A c, but in the form of multiple mutually exclusive and exhaustive events A 1, A 2,..., A k : Generalized Bayes Theorem Suppose the sample space of a probabilistic experiment decomposes into multiple mutually exclusive and exhaustive events A 1, A 2,..., A k, all of whose prior probabilities are known. If new information arises in the guise of the occurrence of an event B, then the posterior probabilities with respect to B are given by the formulas P (A i B) = P (B A i )P (A i ) P (B A 1 )P (A 1 ) + P (B A 2 )P (A 2 ) + + P (B A k )P (A k ) where i can be any one of the indices 1, 2,..., k. 10
11 Calculations of these probabilities by Bayes Theorem are best organized in a table whose columns include, in order, 1. the prior probabilities P (A) and P (A c ) (or P (A 1 ), P (A 2 ),..., P (A k )); 2. the corresponding conditional probabilities P (B A) and P (B A c ) (or P (B A 1 ), P (B A 2 ),..., P (B A k )); 3. the joint probabilities P (A B) and P (A c B) (or P (A 1 B), P (A 2 B),..., P (A k B)), which are the products of the numbers in the first two columns; and then, by using the formula in the Theorem, 4. the resulting posterior probabilities P (A B) and P (A c B) (or P (A 1 B), P (A 2 B),..., P (A k B). 11
12 Counting Rules Many probability computations require the enumeration of outcomes of some probabilistic experiment; consequently, rules for counting collections of objects are useful to have available. n factorial (n!) the product of all the integers from 1 to n (where by convention we always define 0! = 1) permutations ( n P x ) arrangements of objects in which the order of selection matters; if x objects are selected from a total of n objects, then the number of possible permutations of these objects is np x = n! (n x)! combinations ( n C x ) arrangements of objects in which the order of selection does not matter; if x objects are selected from a total of n objects, then the number of possible combinations of these objects is nc x = ( ) n x = n! x!(n x)! 12
Probability the chance that an uncertain event will occur (always between 0 and 1)
Quantitative Methods 2013 1 Probability as a Numerical Measure of the Likelihood of Occurrence Probability the chance that an uncertain event will occur (always between 0 and 1) Increasing Likelihood of
More informationStatistics for Business and Economics
Statistics for Business and Economics Basic Probability Learning Objectives In this lecture(s), you learn: Basic probability concepts Conditional probability To use Bayes Theorem to revise probabilities
More informationProperties of Probability
Econ 325 Notes on Probability 1 By Hiro Kasahara Properties of Probability In statistics, we consider random experiments, experiments for which the outcome is random, i.e., cannot be predicted with certainty.
More informationProbability (Devore Chapter Two)
Probability (Devore Chapter Two) 1016-345-01: Probability and Statistics for Engineers Fall 2012 Contents 0 Administrata 2 0.1 Outline....................................... 3 1 Axiomatic Probability 3
More informationTopic 4 Probability. Terminology. Sample Space and Event
Topic 4 Probability The Sample Space is the collection of all possible outcomes Experimental outcome An outcome from a sample space with one characteristic Event May involve two or more outcomes simultaneously
More informationPreliminary Statistics Lecture 2: Probability Theory (Outline) prelimsoas.webs.com
1 School of Oriental and African Studies September 2015 Department of Economics Preliminary Statistics Lecture 2: Probability Theory (Outline) prelimsoas.webs.com Gujarati D. Basic Econometrics, Appendix
More informationProbability. 25 th September lecture based on Hogg Tanis Zimmerman: Probability and Statistical Inference (9th ed.)
Probability 25 th September 2017 lecture based on Hogg Tanis Zimmerman: Probability and Statistical Inference (9th ed.) Properties of Probability Methods of Enumeration Conditional Probability Independent
More informationTopic 3: Introduction to Probability
Topic 3: Introduction to Probability 1 Contents 1. Introduction 2. Simple Definitions 3. Types of Probability 4. Theorems of Probability 5. Probabilities under conditions of statistically independent events
More informationI - Probability. What is Probability? the chance of an event occuring. 1classical probability. 2empirical probability. 3subjective probability
What is Probability? the chance of an event occuring eg 1classical probability 2empirical probability 3subjective probability Section 2 - Probability (1) Probability - Terminology random (probability)
More informationBasic Probabilistic Reasoning SEG
Basic Probabilistic Reasoning SEG 7450 1 Introduction Reasoning under uncertainty using probability theory Dealing with uncertainty is one of the main advantages of an expert system over a simple decision
More informationThe enumeration of all possible outcomes of an experiment is called the sample space, denoted S. E.g.: S={head, tail}
Random Experiment In random experiments, the result is unpredictable, unknown prior to its conduct, and can be one of several choices. Examples: The Experiment of tossing a coin (head, tail) The Experiment
More informationUnit 7 Probability M2 13.1,2,4, 5,6
+ Unit 7 Probability M2 13.1,2,4, 5,6 7.1 Probability n Obj.: I will be able to determine the experimental and theoretical probabilities of an event, or its complement, occurring. n Vocabulary o Outcome
More informationReview Basic Probability Concept
Economic Risk and Decision Analysis for Oil and Gas Industry CE81.9008 School of Engineering and Technology Asian Institute of Technology January Semester Presented by Dr. Thitisak Boonpramote Department
More information2.6 Tools for Counting sample points
2.6 Tools for Counting sample points When the number of simple events in S is too large, manual enumeration of every sample point in S is tedious or even impossible. (Example) If S contains N equiprobable
More informationLecture Slides. Elementary Statistics Eleventh Edition. by Mario F. Triola. and the Triola Statistics Series 4.1-1
Lecture Slides Elementary Statistics Eleventh Edition and the Triola Statistics Series by Mario F. Triola 4.1-1 4-1 Review and Preview Chapter 4 Probability 4-2 Basic Concepts of Probability 4-3 Addition
More informationLecture Slides. Elementary Statistics Tenth Edition. by Mario F. Triola. and the Triola Statistics Series. Slide 1
Lecture Slides Elementary Statistics Tenth Edition and the Triola Statistics Series by Mario F. Triola Slide 1 4-1 Overview 4-2 Fundamentals 4-3 Addition Rule Chapter 4 Probability 4-4 Multiplication Rule:
More information2011 Pearson Education, Inc
Statistics for Business and Economics Chapter 3 Probability Contents 1. Events, Sample Spaces, and Probability 2. Unions and Intersections 3. Complementary Events 4. The Additive Rule and Mutually Exclusive
More informationProbability- describes the pattern of chance outcomes
Chapter 6 Probability the study of randomness Probability- describes the pattern of chance outcomes Chance behavior is unpredictable in the short run, but has a regular and predictable pattern in the long
More informationSTAT 302 Introduction to Probability Learning Outcomes. Textbook: A First Course in Probability by Sheldon Ross, 8 th ed.
STAT 302 Introduction to Probability Learning Outcomes Textbook: A First Course in Probability by Sheldon Ross, 8 th ed. Chapter 1: Combinatorial Analysis Demonstrate the ability to solve combinatorial
More informationProbability and Applications
Chapter 5 Probability and Applications 5.2 SOME USEFUL DEFINITIONS Random experiment: a process that has an unknown outcome or outcomes that are known only after the process is completed. Event: an outcome
More informationIf S = {O 1, O 2,, O n }, where O i is the i th elementary outcome, and p i is the probability of the i th elementary outcome, then
1.1 Probabilities Def n: A random experiment is a process that, when performed, results in one and only one of many observations (or outcomes). The sample space S is the set of all elementary outcomes
More information4. Probability of an event A for equally likely outcomes:
University of California, Los Angeles Department of Statistics Statistics 110A Instructor: Nicolas Christou Probability Probability: A measure of the chance that something will occur. 1. Random experiment:
More informationConditional Probability
Conditional Probability When we obtain additional information about a probability experiment, we want to use the additional information to reassess the probabilities of events given the new information.
More informationSTA Module 4 Probability Concepts. Rev.F08 1
STA 2023 Module 4 Probability Concepts Rev.F08 1 Learning Objectives Upon completing this module, you should be able to: 1. Compute probabilities for experiments having equally likely outcomes. 2. Interpret
More information3 PROBABILITY TOPICS
Chapter 3 Probability Topics 135 3 PROBABILITY TOPICS Figure 3.1 Meteor showers are rare, but the probability of them occurring can be calculated. (credit: Navicore/flickr) Introduction It is often necessary
More informationModule 1. Probability
Module 1 Probability 1. Introduction In our daily life we come across many processes whose nature cannot be predicted in advance. Such processes are referred to as random processes. The only way to derive
More informationStatistics 251: Statistical Methods
Statistics 251: Statistical Methods Probability Module 3 2018 file:///volumes/users/r/renaes/documents/classes/lectures/251301/renae/markdown/master%20versions/module3.html#1 1/33 Terminology probability:
More informationCHAPTER 4. Probability is used in inference statistics as a tool to make statement for population from sample information.
CHAPTER 4 PROBABILITY Probability is used in inference statistics as a tool to make statement for population from sample information. Experiment is a process for generating observations Sample space is
More informationTopic 2: Probability & Distributions. Road Map Probability & Distributions. ECO220Y5Y: Quantitative Methods in Economics. Dr.
Topic 2: Probability & Distributions ECO220Y5Y: Quantitative Methods in Economics Dr. Nick Zammit University of Toronto Department of Economics Room KN3272 n.zammit utoronto.ca November 21, 2017 Dr. Nick
More informationProbability (Devore Chapter Two)
Probability (Devore Chapter Two) 1016-345-01: Probability and Statistics for Engineers Spring 2013 Contents 0 Preliminaries 3 0.1 Motivation..................................... 3 0.2 Administrata...................................
More informationLecture 6. Probability events. Definition 1. The sample space, S, of a. probability experiment is the collection of all
Lecture 6 1 Lecture 6 Probability events Definition 1. The sample space, S, of a probability experiment is the collection of all possible outcomes of an experiment. One such outcome is called a simple
More informationP(A) = Definitions. Overview. P - denotes a probability. A, B, and C - denote specific events. P (A) - Chapter 3 Probability
Chapter 3 Probability Slide 1 Slide 2 3-1 Overview 3-2 Fundamentals 3-3 Addition Rule 3-4 Multiplication Rule: Basics 3-5 Multiplication Rule: Complements and Conditional Probability 3-6 Probabilities
More informationA survey of Probability concepts. Chapter 5
A survey of Probability concepts Chapter 5 Learning Objectives Define probability. Explain the terms experiment, event, outcome. Define the terms conditional probability and joint probability. Calculate
More informationStatistics for Managers Using Microsoft Excel/SPSS Chapter 4 Basic Probability And Discrete Probability Distributions
Statistics for Managers Using Microsoft Excel/SPSS Chapter 4 Basic Probability And Discrete Probability Distributions 1999 Prentice-Hall, Inc. Chap. 4-1 Chapter Topics Basic Probability Concepts: Sample
More informationProbability. Chapter 1 Probability. A Simple Example. Sample Space and Probability. Sample Space and Event. Sample Space (Two Dice) Probability
Probability Chapter 1 Probability 1.1 asic Concepts researcher claims that 10% of a large population have disease H. random sample of 100 people is taken from this population and examined. If 20 people
More informationBasic Statistics and Probability Chapter 3: Probability
Basic Statistics and Probability Chapter 3: Probability Events, Sample Spaces and Probability Unions and Intersections Complementary Events Additive Rule. Mutually Exclusive Events Conditional Probability
More informationProbability Rules. MATH 130, Elements of Statistics I. J. Robert Buchanan. Fall Department of Mathematics
Probability Rules MATH 130, Elements of Statistics I J. Robert Buchanan Department of Mathematics Fall 2018 Introduction Probability is a measure of the likelihood of the occurrence of a certain behavior
More informationStandard & Conditional Probability
Biostatistics 050 Standard & Conditional Probability 1 ORIGIN 0 Probability as a Concept: Standard & Conditional Probability "The probability of an event is the likelihood of that event expressed either
More informationChapter 4 Introduction to Probability. Probability
Chapter 4 Introduction to robability Experiments, Counting Rules, and Assigning robabilities Events and Their robability Some Basic Relationships of robability Conditional robability Bayes Theorem robability
More information4 Lecture 4 Notes: Introduction to Probability. Probability Rules. Independence and Conditional Probability. Bayes Theorem. Risk and Odds Ratio
4 Lecture 4 Notes: Introduction to Probability. Probability Rules. Independence and Conditional Probability. Bayes Theorem. Risk and Odds Ratio Wrong is right. Thelonious Monk 4.1 Three Definitions of
More informationProbability Year 9. Terminology
Probability Year 9 Terminology Probability measures the chance something happens. Formally, we say it measures how likely is the outcome of an event. We write P(result) as a shorthand. An event is some
More informationProbability Theory and Applications
Probability Theory and Applications Videos of the topics covered in this manual are available at the following links: Lesson 4 Probability I http://faculty.citadel.edu/silver/ba205/online course/lesson
More informationChapter 4 Probability
4-1 Review and Preview Chapter 4 Probability 4-2 Basic Concepts of Probability 4-3 Addition Rule 4-4 Multiplication Rule: Basics 4-5 Multiplication Rule: Complements and Conditional Probability 4-6 Counting
More information1 Probability Theory. 1.1 Introduction
1 Probability Theory Probability theory is used as a tool in statistics. It helps to evaluate the reliability of our conclusions about the population when we have only information about a sample. Probability
More information2.4. Conditional Probability
2.4. Conditional Probability Objectives. Definition of conditional probability and multiplication rule Total probability Bayes Theorem Example 2.4.1. (#46 p.80 textbook) Suppose an individual is randomly
More informationStatistics for Managers Using Microsoft Excel (3 rd Edition)
Statistics for Managers Using Microsoft Excel (3 rd Edition) Chapter 4 Basic Probability and Discrete Probability Distributions 2002 Prentice-Hall, Inc. Chap 4-1 Chapter Topics Basic probability concepts
More informationELEG 3143 Probability & Stochastic Process Ch. 1 Probability
Department of Electrical Engineering University of Arkansas ELEG 3143 Probability & Stochastic Process Ch. 1 Probability Dr. Jingxian Wu wuj@uark.edu OUTLINE 2 Applications Elementary Set Theory Random
More informationMATH2206 Prob Stat/20.Jan Weekly Review 1-2
MATH2206 Prob Stat/20.Jan.2017 Weekly Review 1-2 This week I explained the idea behind the formula of the well-known statistic standard deviation so that it is clear now why it is a measure of dispersion
More informationProbability Year 10. Terminology
Probability Year 10 Terminology Probability measures the chance something happens. Formally, we say it measures how likely is the outcome of an event. We write P(result) as a shorthand. An event is some
More informationtossing a coin selecting a card from a deck measuring the commuting time on a particular morning
2 Probability Experiment An experiment or random variable is any activity whose outcome is unknown or random upfront: tossing a coin selecting a card from a deck measuring the commuting time on a particular
More informationLecture 1. Chapter 1. (Part I) Material Covered in This Lecture: Chapter 1, Chapter 2 ( ). 1. What is Statistics?
Lecture 1 (Part I) Material Covered in This Lecture: Chapter 1, Chapter 2 (2.1 --- 2.6). Chapter 1 1. What is Statistics? 2. Two definitions. (1). Population (2). Sample 3. The objective of statistics.
More informationSTT When trying to evaluate the likelihood of random events we are using following wording.
Introduction to Chapter 2. Probability. When trying to evaluate the likelihood of random events we are using following wording. Provide your own corresponding examples. Subjective probability. An individual
More informationTopic -2. Probability. Larson & Farber, Elementary Statistics: Picturing the World, 3e 1
Topic -2 Probability Larson & Farber, Elementary Statistics: Picturing the World, 3e 1 Probability Experiments Experiment : An experiment is an act that can be repeated under given condition. Rolling a
More informationChapter 6: Probability The Study of Randomness
Chapter 6: Probability The Study of Randomness 6.1 The Idea of Probability 6.2 Probability Models 6.3 General Probability Rules 1 Simple Question: If tossing a coin, what is the probability of the coin
More informationLearning Objectives for Stat 225
Learning Objectives for Stat 225 08/20/12 Introduction to Probability: Get some general ideas about probability, and learn how to use sample space to compute the probability of a specific event. Set Theory:
More informationIntroduction to probability
Introduction to probability 4.1 The Basics of Probability Probability The chance that a particular event will occur The probability value will be in the range 0 to 1 Experiment A process that produces
More informationLecture 2: Probability
Lecture 2: Probability MSU-STT-351-Sum-17B (P. Vellaisamy: MSU-STT-351-Sum-17B) Probability & Statistics for Engineers 1 / 39 Chance Experiment We discuss in this lecture 1 Random Experiments 2 Sample
More informationMATH 120. Test 1 Spring, 2012 DO ALL ASSIGNED PROBLEMS. Things to particularly study
MATH 120 Test 1 Spring, 2012 DO ALL ASSIGNED PROBLEMS Things to particularly study 1) Critical Thinking Basic strategies Be able to solve using the basic strategies, such as finding patterns, questioning,
More informationINDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR. NPTEL National Programme on Technology Enhanced Learning. Probability Methods in Civil Engineering
INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR NPTEL National Programme on Technology Enhanced Learning Probability Methods in Civil Engineering Prof. Rajib Maity Department of Civil Engineering IIT Kharagpur
More informationEssential Statistics Chapter 4
1 Essential Statistics Chapter 4 By Navidi and Monk Copyright 2016 Mark A. Thomas. All rights reserved. 2 Probability the probability of an event is a measure of how often a particular event will happen
More informationWeek 2: Probability: Counting, Sets, and Bayes
Statistical Methods APPM 4570/5570, STAT 4000/5000 21 Probability Introduction to EDA Week 2: Probability: Counting, Sets, and Bayes Random variable Random variable is a measurable quantity whose outcome
More informationEcon 325: Introduction to Empirical Economics
Econ 325: Introduction to Empirical Economics Lecture 2 Probability Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Ch. 3-1 3.1 Definition Random Experiment a process leading to an uncertain
More information7.1 What is it and why should we care?
Chapter 7 Probability In this section, we go over some simple concepts from probability theory. We integrate these with ideas from formal language theory in the next chapter. 7.1 What is it and why should
More informationSets and Set notation. Algebra 2 Unit 8 Notes
Sets and Set notation Section 11-2 Probability Experimental Probability experimental probability of an event: Theoretical Probability number of time the event occurs P(event) = number of trials Sample
More informationGlossary for the Triola Statistics Series
Glossary for the Triola Statistics Series Absolute deviation The measure of variation equal to the sum of the deviations of each value from the mean, divided by the number of values Acceptance sampling
More informationMATH 118 FINAL EXAM STUDY GUIDE
MATH 118 FINAL EXAM STUDY GUIDE Recommendations: 1. Take the Final Practice Exam and take note of questions 2. Use this study guide as you take the tests and cross off what you know well 3. Take the Practice
More informationUNIT Explain about the partition of a sampling space theorem?
UNIT -1 1. Explain about the partition of a sampling space theorem? PARTITIONS OF A SAMPLE SPACE The events B1, B2. B K represent a partition of the sample space 'S" if (a) So, when the experiment E is
More informationSection 4.2 Basic Concepts of Probability
Section 4.2 Basic Concepts of Probability 2012 Pearson Education, Inc. All rights reserved. 1 of 88 Section 4.2 Objectives Identify the sample space of a probability experiment Identify simple events Use
More informationMAT2377. Ali Karimnezhad. Version September 9, Ali Karimnezhad
MAT2377 Ali Karimnezhad Version September 9, 2015 Ali Karimnezhad Comments These slides cover material from Chapter 1. In class, I may use a blackboard. I recommend reading these slides before you come
More informationSample Space: Specify all possible outcomes from an experiment. Event: Specify a particular outcome or combination of outcomes.
Chapter 2 Introduction to Probability 2.1 Probability Model Probability concerns about the chance of observing certain outcome resulting from an experiment. However, since chance is an abstraction of something
More informationElementary Discrete Probability
Elementary Discrete Probability MATH 472 Financial Mathematics J Robert Buchanan 2018 Objectives In this lesson we will learn: the terminology of elementary probability, elementary rules of probability,
More informationBasic Concepts of Probability. Section 3.1 Basic Concepts of Probability. Probability Experiments. Chapter 3 Probability
Chapter 3 Probability 3.1 Basic Concepts of Probability 3.2 Conditional Probability and the Multiplication Rule 3.3 The Addition Rule 3.4 Additional Topics in Probability and Counting Section 3.1 Basic
More informationLecture 8: Conditional probability I: definition, independence, the tree method, sampling, chain rule for independent events
Lecture 8: Conditional probability I: definition, independence, the tree method, sampling, chain rule for independent events Discrete Structures II (Summer 2018) Rutgers University Instructor: Abhishek
More informationCS37300 Class Notes. Jennifer Neville, Sebastian Moreno, Bruno Ribeiro
CS37300 Class Notes Jennifer Neville, Sebastian Moreno, Bruno Ribeiro 2 Background on Probability and Statistics These are basic definitions, concepts, and equations that should have been covered in your
More informationLECTURE NOTES by DR. J.S.V.R. KRISHNA PRASAD
.0 Introduction: The theory of probability has its origin in the games of chance related to gambling such as tossing of a coin, throwing of a die, drawing cards from a pack of cards etc. Jerame Cardon,
More informationProbability deals with modeling of random phenomena (phenomena or experiments whose outcomes may vary)
Chapter 14 From Randomness to Probability How to measure a likelihood of an event? How likely is it to answer correctly one out of two true-false questions on a quiz? Is it more, less, or equally likely
More informationa. The sample space consists of all pairs of outcomes:
Econ 250 Winter 2009 Assignment 1 Due at Midterm February 11, 2009 There are 9 questions with each one worth 10 marks. 1. The time (in seconds) that a random sample of employees took to complete a task
More informationProbability Dr. Manjula Gunarathna 1
Probability Dr. Manjula Gunarathna Probability Dr. Manjula Gunarathna 1 Introduction Probability theory was originated from gambling theory Probability Dr. Manjula Gunarathna 2 History of Probability Galileo
More informationLecture notes for probability. Math 124
Lecture notes for probability Math 124 What is probability? Probabilities are ratios, expressed as fractions, decimals, or percents, determined by considering results or outcomes of experiments whose result
More informationChapter 15. Probability Rules! Copyright 2012, 2008, 2005 Pearson Education, Inc.
Chapter 15 Probability Rules! Copyright 2012, 2008, 2005 Pearson Education, Inc. The General Addition Rule When two events A and B are disjoint, we can use the addition rule for disjoint events from Chapter
More informationAn event described by a single characteristic e.g., A day in January from all days in 2012
Events Each possible outcome of a variable is an event. Simple event An event described by a single characteristic e.g., A day in January from all days in 2012 Joint event An event described by two or
More informationProbabilistic Reasoning
Course 16 :198 :520 : Introduction To Artificial Intelligence Lecture 7 Probabilistic Reasoning Abdeslam Boularias Monday, September 28, 2015 1 / 17 Outline We show how to reason and act under uncertainty.
More informationOrigins of Probability Theory
1 16.584: INTRODUCTION Theory and Tools of Probability required to analyze and design systems subject to uncertain outcomes/unpredictability/randomness. Such systems more generally referred to as Experiments.
More informationPresentation on Theo e ry r y o f P r P o r bab a il i i l t i y
Presentation on Theory of Probability Meaning of Probability: Chance of occurrence of any event In practical life we come across situation where the result are uncertain Theory of probability was originated
More informationCounting principles, including permutations and combinations.
1 Counting principles, including permutations and combinations. The binomial theorem: expansion of a + b n, n ε N. THE PRODUCT RULE If there are m different ways of performing an operation and for each
More informationSlide 1 Math 1520, Lecture 21
Slide 1 Math 1520, Lecture 21 This lecture is concerned with a posteriori probability, which is the probability that a previous event had occurred given the outcome of a later event. Slide 2 Conditional
More information(6, 1), (5, 2), (4, 3), (3, 4), (2, 5), (1, 6)
Section 7.3: Compound Events Because we are using the framework of set theory to analyze probability, we can use unions, intersections and complements to break complex events into compositions of events
More informationChap 4 Probability p227 The probability of any outcome in a random phenomenon is the proportion of times the outcome would occur in a long series of
Chap 4 Probability p227 The probability of any outcome in a random phenomenon is the proportion of times the outcome would occur in a long series of repetitions. (p229) That is, probability is a long-term
More informationFrom Bayes Theorem to Pattern Recognition via Bayes Rule
From Bayes Theorem to Pattern Recognition via Bayes Rule Slecture by Varun Vasudevan (partially based on Prof. Mireille Boutin s ECE 662 lecture) February 12, 2014 What will you learn from this slecture?
More informationProbability: Understanding the likelihood of something happening.
TED.MonaChalabi.adStatistics Probability: nderstanding the likelihood of something happening. Properties of probabilities They are numbers between 0 and 1 0 means the event under consideration is impossible
More information4-1 BASIC CONCEPTS OF PROBABILITY
CHAPTER 4 4-1 BASIC CONCEPTS OF PROBABILITY Identify probabilities as values between 0 and 1, and interpret those values as expressions of likelihood of events Develop the ability to calculate probabilities
More informationHomework (due Wed, Oct 27) Chapter 7: #17, 27, 28 Announcements: Midterm exams keys on web. (For a few hours the answer to MC#1 was incorrect on
Homework (due Wed, Oct 27) Chapter 7: #17, 27, 28 Announcements: Midterm exams keys on web. (For a few hours the answer to MC#1 was incorrect on Version A.) No grade disputes now. Will have a chance to
More informationDiscrete Random Variables
Discrete Random Variables An Undergraduate Introduction to Financial Mathematics J. Robert Buchanan Introduction The markets can be thought of as a complex interaction of a large number of random processes,
More informationChapter Learning Objectives. Random Experiments Dfiii Definition: Dfiii Definition:
Chapter 2: Probability 2-1 Sample Spaces & Events 2-1.1 Random Experiments 2-1.2 Sample Spaces 2-1.3 Events 2-1 1.4 Counting Techniques 2-2 Interpretations & Axioms of Probability 2-3 Addition Rules 2-4
More informationDiscrete Finite Probability Probability 1
Discrete Finite Probability Probability 1 In these notes, I will consider only the finite discrete case. That is, in every situation the possible outcomes are all distinct cases, which can be modeled by
More informationProblems from Probability and Statistical Inference (9th ed.) by Hogg, Tanis and Zimmerman.
Math 224 Fall 2017 Homework 1 Drew Armstrong Problems from Probability and Statistical Inference (9th ed.) by Hogg, Tanis and Zimmerman. Section 1.1, Exercises 4,5,6,7,9,12. Solutions to Book Problems.
More informationThe probability of an event is viewed as a numerical measure of the chance that the event will occur.
Chapter 5 This chapter introduces probability to quantify randomness. Section 5.1: How Can Probability Quantify Randomness? The probability of an event is viewed as a numerical measure of the chance that
More informationan event with one outcome is called a simple event.
Ch5Probability Probability is a measure of the likelihood of a random phenomenon or chance behavior. Probability describes the long-term proportion with which a certain outcome will occur in situations
More informationDiscrete Probability
Discrete Probability Counting Permutations Combinations r- Combinations r- Combinations with repetition Allowed Pascal s Formula Binomial Theorem Conditional Probability Baye s Formula Independent Events
More informationName: Exam 2 Solutions. March 13, 2017
Department of Mathematics University of Notre Dame Math 00 Finite Math Spring 07 Name: Instructors: Conant/Galvin Exam Solutions March, 07 This exam is in two parts on pages and contains problems worth
More information