MGMT 1050 Lecture Notes - Lecture 6: Mutual Exclusivity, Sample Space, Set Notation
14 Mar 2018
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Document Summary
Random experiment: an action or process that leads to one of several possible outcomes. Step 1 in assigning probabilities: produce a list of outcomes. Outcomes must be exhaustive, meaning all possible outcomes must be included. Outcomes must be mutually exclusive, meaning no two outcomes can occur at the same time. Sample space: a sample space of a random experiment is a list of all possible outcomes of the experiment. The outcomes must be exhaustive and mutually exclusive. Sample space is represented using set notation: s = {o1, o2ok} Relative frequency approach defines probability as the long-run relative frequency with which an outcome occurs. Have to observe an infinite number of observations to determine the exact probability. Subjective approach define probability as the degree of belief that we hold in the occurrence of an event. An individual outcome of a sample space is called a simple event. All other events are composed of the simple events in a sample space.
