BUS 082 Lecture Notes - Lecture 13: Collectively Exhaustive Events, Mutual Exclusivity, Empirical Probability

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: bettencourt

Document Summary

Probability the chance or possibility that an uncertain event will occur. A priori based on prior knowledge of the process. P = number of ways event can occur / total number of outcomes. Empirical probability estimated from observed data. P = number of ways event has occurred / number of trials. Based on an individual"s past experience, personal opinion and/or analysis of the situation. Simple event described by a single characteristic. Joint event described by two or more characteristics. Complement of an event all events that are not the event of interest. Sample space collection of all possible events. E. g. a customer buys a product and pays more than . E. g. customer does not purchase a product. Simple/marginal probability probability of a simple event. Joint probability probability of two or more events. Mutually exclusive events cannot occur simultaneously. Collectively exhaustive events covers entire sample space. E. g. a day in january and a day in february.