EC255 Lecture Notes - Lecture 4: Complementary Event, Mutual Exclusivity, Initial Public Offering
Document Summary
Probability definition: the probability of an event is a number that measures the relative likelihood that the event will occur, the probability of event a must lie within 0 to 1: (cid:882) (cid:4666)(cid:1827)(cid:4667) (cid:883) Experiment: a process that produces an outcome, more than 1 possible outcome, only 1 outcome per trial, outcome cannot be known with certainty in advance, trial, one repetition of the process. Event: an outcome of an experiment, may be an elementary event, roll a die -> (cid:374)u(cid:373)(cid:271)ers (cid:1005),(cid:1006) 6, may be an aggregate event, role a die -> odd or even. Sample space: set of all possible events for experiment, usually denoted by s. Classical method: experiment, roll a die -> s={(cid:1005),(cid:1006), 6, probabilities: each outcome has a ? chance of occurring, an experiment has n possible equal-likely outcomes, classical method would assign a probability of ? to each outcome.
