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Review: Chapter 5
.
In Chapter 5, we discussed basic probability concepts, and revisited the same basic material we
developed in Chapter 3, but with a new twist.
We considered the concepts of
random variables
and their
probability distributions
.
These are related closely to the material in Chapter 3 where we discussed
variables and their distributions, frequency and relative frequency distributions. Probability distributions
are essentially relative frequency distributions for populations.
Why populations?
While the following is probably not an exhaustive list (let me know if you think of something missing), it
represents some of the important concepts in we’ve discussed in Chapter 5:
•
Basic Probability:
You should understand the basic vocabulary we used to discuss basic probability.
You should be able to discuss/describe each of the following basic probability concepts and terms:
9
Experiment
9
Outcome
9
Sample Space
9
Events
9
Notation for Events
9
Using “
and
” versus “
or
”
9
Joint Events
9
Notation for Probability
9
Mutually Exclusive
9
Complement
9
Probability: 3 properties.
9
Classical Probability
9
Frequentist Approach to Probability
9
Subjective Probability
9
Distinguish the Union from Intersection
9
Independent Events
9
Joint Frequency Distribution
9
Joint Probability Distribution
9
Marginal Probability
9
Joint Probability
9
Conditional Probability
•
Calculating Probabilities:
9
You should understand the concept of
classical probability
and be able to calculate
marginal
(or
simple),
joint
and
conditional
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This note was uploaded on 12/08/2011 for the course ECON 211 taught by Professor Daniellass during the Spring '11 term at UMass (Amherst).
 Spring '11
 DanielLass

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