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Chapter02

# Chapter02 - Probability definitions Random process a...

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Probability definitions Random process : a process whose outcome can not  be predicted with certainty Sample space (S) : the collection of all possible  outcomes to a random process Event (A,B) : a collection of possible outcomes Simple : one outcome Compound : more than one outcome Probability : a number between 0 and 1 (inclusive)  indicating the likelihood that the event will occur

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Set theory review Union  (         ) – all elements in  A   or   B Intersection  (          ) - all elements in  A   and   B Complement  (      ) – all elements  not  in the set Mutually exclusive  – two events are mutually exclusive if  they have no outcomes in common Venn Diagram A B U A B I c A
Elementary probability The proportion of times that an event  A  occurs converges  to the probability of  A P(A) , as the number of repetitions  becomes large. Test your  psychic ability !

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Probability with equally likely outcomes If a sample space is composed of  k   equally likely  outcomes with  m   outcomes contained in  A , then  P(A)  =  m/k . Two way classification for the salary data:
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Chapter02 - Probability definitions Random process a...

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