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

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

Chapter 5 1 Chapter 5 Probability

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

View Full Document
Chapter 5 2 Experiments Experiment Not “a priori” Outcome Sample Space Discrete vs. continuous S = { …} Event Simple vs. Compound Likelihood
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?

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

View Full Document
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
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

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

View Full Document
Chapter 5 6 More probability rules Odds: P(A) / P(A’) Union (OR) Intersection (AND) Venn diagrams
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%

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### 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
Ask a homework question - tutors are online