EC255 Lecture Notes - Lecture 4: Conditional Probability, Mutual Exclusivity, Collectively Exhaustive Events
Document Summary
Businesses want to be able to quantify the uncertainty of future events. The study of probability helps us understand and quantify the uncertainty surrounding the future. In the long run, you will likely encounter concepts involving probability quite often. In this class, probability will help us make the transition from. Probability: a number that measure the relative likelihood that the event will occur. The probability of event [denoted p(a)] must lie within the interval from 0 to 1: A process that produces an outcome (can be more than one) Outcome can"t be known with certainty in advance. Roll a die numbers: 1, 2, , 6. E. g. task completion time > zero minutes. Roll a die numbers, 1, 2, , 6. Roll a die s = 1, 2, 3, 4, 5, 6. Pick a card s = all 52 cards of a bridge deck. Relative frequency of occurrence: based on historical data.
