Ch05 - Chapter 5 Probability Chapter 5 1 Experiments...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5 1 Chapter 5 Probability
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 5 2 Experiments Experiment Not “a priori” Outcome Sample Space Discrete vs. continuous S = { …} Event Simple vs. Compound Likelihood
Background image of page 2
Chapter 5 3 So let’s turn to the likelihood that certain events from my sample space will become the outcome of my experiment… Why is probability important?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 5 4 Probability Rules 0 P (A) ≤ 1 What if P(A) = 0? What if P(A) = 1? P (S) = 1 P (A`) = 1 − P (A) Complement Rule
Background image of page 4
Chapter 5 5 Assigning Probability Empirical No “a priori” knowledge Assign probability using f/n Law of Large numbers Classical A priori knowledge – not common in business Subjective No repeatable random experiment
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 5 6 More probability rules Odds: P(A) / P(A’) Union (OR) Intersection (AND) Venn diagrams
Background image of page 6
7 Clicker Q There are 4 to 1 odds against my horse winning the race. What is the probability that my horse will win? A.) 40%
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 17

Ch05 - Chapter 5 Probability Chapter 5 1 Experiments...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online