Probability
Probability is the measure of uncertainty of various phenomenon, numerically. It can have positive value from 0 to 1.
The words‘ probably’,‘ doubt’,‘ most probably’,‘ chances’, etc., used in the statements above involve an element of uncertainty.
Concept of Probability is used in insurance industry to calculate the premium; it is also used in stock markets, gambling industry, weather forecasting, manufacturing industry, Science Experiments etc.
Probability is a measure of uncertainty of various phenomenon. Probability =( no. of favourable outcome)/( total no. of outcomes) Approach to Probability: o o o
Statistical approach: Observation & data collection Classical approach: Only Equal probable events
Axiomatic approach: For real life events. It closely relates to set theory.
In this chapter we will focus on Axiomatic Approach to Probability.
Sample space: Set of all possible outcomes of a random experiment is called sample space. It is denoted by the symbol S. Example: In Toss of a coin, Sample space is Head, Tail.
Sample point: Each element of the sample space is called a sample point. E. g. in throw of Die, Head is a Sample point.
Event: It is the set of favourable outcome. Also, Event is a subset of the sample space. E. g. Event of getting odd outcome in a throw of a die
Types of Event o o o
Impossible and Sure Events Simple Event Compound Event