MA340 Lecture Notes - Rudolf Wolf, Probability Theory, Probability Axioms
Document Summary
Text: chapter 1 and sections 2. 1, 2. 2 of chapter 2. Print version of the lecture in ma340 probability theory presented on september 11, 2012. Exam- ples include: the weather, the outcome of a coin toss, lotteries, stock and commodity prices, etc optimize them. The purpose of ma 340 is to give the student a formal vocabulary of probability models, along with information about their properties and experience in their application. Besides its direct uses and extensions, this knowledge complements other areas of pure and applied mathematics, such as statistics, nancial mathematics, and operations research. P(e) = n(e) n( ) where is a nite sample space of equally likely outcomes: a probability is a measure of likelihood on a scale of 0 to 1. The probability of an impos- sible event is zero, the probability of an inevitable (certain) event is one. A rare event has a probability close to zero.
